| HONG KONG
HONG KONG Nov 22 PTiFund, a
Shenzhen-based private equity startup backed by Hong Kong-listed
developer Top Spring International Holdings Ltd, said
it has closed the first round of financing on its debut fund, a
500 million yuan ($79 million) product.
The company raised 25 percent of the total with the first
close, which took place on Monday.
"We are still working towards year-end with our distribution
partner and before mid-December hope to have the final close, at
half a billion yuan," said Chief Investment Officer Payne Fung.
He added that PTiFund had three funds in the pipeline
looking to raise 1.5 billion yuan ($236 million). The second and
third funds were each of a similar size, with the second fund
due to launch later this month.
The first fund, Tianjin PTiFund Limited Partnership, will
invest in a residential property project in Shenzhen. The fund
is being promoted and distributed by one of China's state-owned
banks to wealthy customers.
The second and third funds are also project-specific,
raising money for a mixed-use development in Guangdong Province
near Guangzhou, and for a mixed-use project in the Yangtze River
Chinese real estate funds raised $2 billion in the third
quarter, up 60 percent from the previous three months, according
to consultancy Zero2IPO. They are filling a gap as developers
suffer from lending curbs and stagnant sales in China.
CITIC Capital Holdings said last week that it had closed the
first round of financing on its $600 million retail fund, its
fourth real-estate fund in mainland China.
Property developers in China are also shifting their
attention away from purely residential developments as the home
market in China slows. Official data showed on Friday that
average home prices moved lower for the first time this year.
Policymakers in China are attempting to pull off a tough
balancing act. They want to rein in runaway home values and
demonstrate that they are committed to affordable housing. But
buyers who have recently purchased homes have demonstrated in
cities such as Shanghai and Beijing, with some protests turning
($1 = 6.3600 yuan)
(Additional reporting by Samuel Shen and Langi Chiang; Editing
by Chris Lewis)