HONG KONG, July 10 Standard Chartered Bank
said on Thursday its private equity arm led a $124
million investment to buy a 28 percent stake in a commercial
real estate project in China even as real estate prices ease.
Standard Chartered said it invested $69.4 million, or just
over half, of the total into the project, which is sponsored by
Hong Kong-listed Longfor Properties Co Ltd and located
in the western province of Chongqing.
Other investors included an unnamed Chinese institutional
investor and an Asian family, the statement said.
The project, in one of Chongqing's main business centres,
has a gross floor area of 312,310 square metres.
Longfor Properties has a market capitalisation of over $7
billion and a land bank of over 41 million square metres.
Economists say the cooling housing market may pose a
significant risk to China's economy if conditions deteriorate
sharply. Average home prices fell for the first time in May
while new construction starts have tumbled.
Analysts believe the Beijing government may have to announce
more stimulus measures in the coming months to offset the
increasing drag from the cooling property sector, Reuters
(Reporting by Stephen Aldred; Editing by Miral Fahmy)