Citi pvt bank, China conglomerate launch property funds

SINGAPORE Feb 25 (Reuters) - Citigroup's (C.N) private banking arm and conglomerate China Resources Group have launched two real estate funds that will invest in Chinese shopping malls and hope to raise about $500 million, two sources with knowledge of the plan said.

Citigroup confirmed the plan, saying its private bank is the exclusive distributor of the funds sponsored by China Resources, but did not provide the target size.

The funds are the CR China Retail Real Estate Income Fund 1 and CR China Retail Real Estate Development Fund 1. These will target annual returns of 12-15 percent and 20 percent, respectively. (Reporting by Saeed Azhar and Kevin Lim; Editing by Muralikumar Anantharaman)