#M&A activity likely to increase in China’s #real estate market
Industry analysis foresee more mergers and acquisitions in China’s real estate sector this year, with domestic players continuing to dominate the 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.
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