Savills Investment Management has formed a joint venture with private investment firm China Minsheng Investment Capital (CMIC) to launch a series of global real estate funds.
Savills Investment Management has formed a joint venture with private investment firm China Minsheng Investment Capital (CMIC) to launch a series of global real estate funds.
The partners said their first major joint initiative is a new real estate fund, CMISIM European Investment, in which CMIC is the cornerstone investor with seed capital of up to £30 mln (€42 mln).
The fund aims to deliver a net return to investors of 15%.
The majority of the seed capital in the fund will be invested into Savills Investment Management’s Prime London Residential Development Fund II (PLRDF II) and the remaining amount will be used to invest in other UK projects.
Launched in 2014, PLRDF II focuses on mid-market residential developments in select locations in London. CMIC will invest an additional £20 mln as a Limited Partner in the PLRDF II fund.
In a second stage, the joint venture also plans to raise new capital from other investors from China and internationally and expand its investment into other markets in Europe.
'Our joint venture partnership with Savills Investment Management represents an important step in establishing a global real estate investment Platform,' said Terry Liu, CEO of China Minsheng Investment Capital.
Justin O’Connor, CEO of Savills Investment Management, added: 'Our inaugural fund, CMISIM European Investment Fund, is well-placed to deliver superior risk adjusted returns by offering immediate exposure to PLRDF II and other fund and projects managed by SIM.'
