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Alternative Market Briefing

RP Capital's new fund will focus on mainland China commercial real estate

Monday, March 14, 2011

From Kirsten Bischoff, Opalesque New York:

The China real estate market continues to heat up at a pace that suggests the bubble that is asserted to be under way, may have serious staying-power. A population of 1.8bn people along with surging capital allocations from investors around the world eager to participate in any market with such rates of growth (17% asset inflow growth expected over 2010), could keep this market on the fast track. RP Capital believes it is, and the firm has recently launched a new fund that will invest in mainland China's commercial real estate sector, as this area continues to outperform.

"China is a very big country," Raymond Fung, Director of RP Capital comments to Sona Blessing during a recent Opalesque Radio interview about the new fund. One out of every five people on the planet is a resident of China. Even with a focus that extends to the second tier cities of that country, Fung points out that those cities in and of themselves, with populations that can reach 13m people - are comparable in population size to some small countries.

"Retail sales have been very strong for the past few years, and we will place a very big focus on retail such as retail shops and commercial malls," Fung says. The Greater China Regional Fund will i......................

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