Century Bridge Capital has invested USD60 million in two joint venture real estate developments for middle-income, residential projects in Zhongshan and Wuxi, China.
Century Bridge chief executive Tom Delatour says: "The two investments are consistent with our established strategy and reflect the characteristics we believe are essential for successful joint venture residential developments in Tier 2 and 3 cities in China. Both are in-fill sites located in vibrant submarkets within cities experiencing dynamic economic expansion.
“Like all the markets we target, they are also experiencing increasing levels of affordability, with annual disposable income growth exceeding home price growth. In addition to benefiting from adjacent infrastructure and accessible amenities, the projects themselves are designed to meet the needs of middle class buyers in these areas.
“As is the case with the underwriting of urban real estate developments globally, where market conditions vary from region to region, country to country, city to city and submarket to submarket within individual cities, understanding and documenting the trends, local economics and purchaser profiles on a submarket basis is critical. Both the Zhongshan and Wuxi investments are based on a rigorous assessment of these factors."
Century Bridge president Wei Deng adds: "The growth strategy and investment philosophy of our partners on these two transactions is very much in line with that of Century Bridge. Jingrui Holdings, apart from developing in Shanghai, has primarily focused on projects in Tier 2 and 3 cities. As a Hong-Kong listed national developer with more than 20 years’ experience, their history of success and level of expertise in these markets makes them an ideal partner for us.
"Dongfu Real Estate Development Company is a local developer with a long track record of developing projects solely within the city of Zhongshan. Its core group of real estate professionals have deep roots in the city and have demonstrated success with a variety of projects in the local market."