New Delhi: Singapore-based business space solutions provider Ascendas has set up two real estate funds in China - Ascendas China Industrial and Business Parks Fund (ACIBPF) and Ascendas China Commercial Fund (ACCF) – the company announced in a release on 7 August.
ACIBPF, a part of Ascendas’ flagship project in China - the Xinsu assets - is expected to invest up to S$600 million (Rs159 crore) in industrial and business park assets. The Xinsu assets are prime buildings and land in the Suzhou Industrial Park, comprising 54 buildings with a total gross floor area in excess of 261,000 square metres.
ACIBPF plans to achieve returns by investing in light industrial and logistics facilities including warehouses and distribution centres, software and IT related facilities, suburban business office buildings and business parks across China. The commercial assets wing would invest in a portfolio of quality commercial properties in first-tier cities in mainland China.
ACCF is targeting to invest up to S$800 million (Rs212 crore) in commercial assets. It seeks to maximise total returns on capital by building a portfolio of investments comprising income-generating Grade A commercial buildings strategically located in prime business areas in China.
The company has been actively involved in China since 1994. Its operations span in Chinese cities like Shanghai, Suzhou, Beijing, Dalian, Xi’an, Nanjing, Hangzhou, Tianjin and Shenzhen. GDP growth in the major industrial parks in China is expected to exceed the average 9.8% GDP growth of the country over the last 16 years, the release added.