Real Estate

Citi Private Bank Pairs Up With Chinese Conglomerate For Two New Funds

Vanessa Doctor Asia Editor 28 February 2010


Citi Private Bank and state-owned conglomerate China Resources Group have launched two new real estate funds that will focus on Chinese shopping malls, according to Reuters.

A spokesperson from Citi confirmed the launch of the funds when contacted by WealthBriefing Asia, adding that its private banking arm is the exclusive distributor of a CR Group-sponsored realty fund, but declined to give details on the new funds' target sizes.

The report said they are called CR China Retail Real Estate Income Fund 1 and CR China Retail Real Estate Development Fund 1, citing unnamed sources.
"Secondary cities in China are experiencing a boom on the back of rapid urbanisation. Where Beijing, Shanghai and Guangzhou were once the main beneficiaries of this migration, Tier II and Tier III cities such as Ningbo, Tianjin and Qingdao are now capable of offering similar opportunities. With an influx of people come demands for commercial and retail real estate. The real estate fund gives investors the chance to capitalise on that trend," said Quek Kwang Meng, the head of real estate investments for Citi Private Bank, in an emailed response to this publication.

The high net worth population in China surpassed that of the UK in 2008 to become the fourth largest in the world, according to the last Merrill Lynch/Capgemini World Wealth Report. The research said that the China's population of high net worth individuals is expected to triple the 2008 numbers by 2018, as smaller cities begin to expand and the volume of wealth from the rural areas rises.

Citi serves over 500,000 affluent Citigold and more than 6,000 private banking clients in the Asia Pacific region alone. 

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