Friday, December 19, 2008

Harvest plans new China fund: forecasts early recovery

Harvest Capital Partners, a property investment firm backed by state conglomerate China Resources Group, aims to raise a new fund next year.

Its two existing property funds totalling $1 billion are fully invested.

Rong Ren, chief executive of Harvest Capital, said the company, headquartered in Hong Kong and mainly funded by investors from the United States, the United Kingdom and Japan, also intends to pick one or two projects offloaded by foreign real estate private equity funds in China.

Ren, a former investment banker with more than 14 years of experience in the financing and property industries, expects China's real estate market to recover as early as the third quarter of 2009. His firm will continue to focus on investments in top-tier Chinese cities, especially Beijing.

He said, ¡®Bubbles can happen in some cities but not be a widespread phenomenon. Once the confidence level is back, the market will recover.'

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