#M&A activity likely to increase in China’s #real estate market
As property developers’ cash flow will be further squeezed due to the tightened credit policies, M&A will be the trend for property developer in 2012, said Ye Chengyu, director of investment at Cushman & Wakefield.
More over, the developers financing channels such as trust and overseas financing products will come due this year. According to Guo Tai Jun An Securities, real estate trust products valued at USD 28 billion will come due this year, with the peak occurring in July.
According to Ye from Cushman & Wakefield, more deals involving international investors are expected, although domestic players will still dominate the investment market.
Because of its matured market and tradable assets, Beijing and Shanghai remained the most-favoured cities by international investors, especially core real estate funds that prefer relatively lower risks, said Ye.
However, due to the limited supply and fierce competition, opportunist international funds are seeking opportunities in second-tier cities, commented Frank Marriott, senior director of Savills Real Estate Capital.
Want to find out more about the commercial real estate landscape in China? Join us at the 7th annual Real Estate Investment World China 2012 this March in Beijing. To enrol this insightful and China’s most establish real estate investment management forum (download conference brochure), email email@example.com or call +65 6322 2701 for more information.