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China,United States : CARLYLE GROUP signed a strategic pact with a CHINESE real estate giant to buy 9 commercial properties

September 2, 2014

The Carlyle Group of the US has made an official statement to reveal that it has reached a strategic collaboration deal with China Vanke Co,Ltd., a leading real estate developer of China, for the acquisition of nine commercial properties from the Chinese firm.

Carlyle Group, a global private equity firm, is based in Washington, D.C.

Although no official announcement has been made on the size of the deal, earlier media reports valued the same at US$997 million to US$1.6 billion.

Both the entities will set up a joint asset platform company via signing of a memorandum of understanding (MOU) in order to carry out purchases. Carlyle will be a majority stakeholder of the new business with an interest of 80%, while Vanke will own the rest 20% stake of the joint venture.

It is anticipated that the joint asset platform company will feature the nine unspecified China-based commercial properties for a long term, prior to the securitization of the assets in the upcoming period, which maybe done in the shape of a Real Estate Investment Trust (REIT).

It is also expected that Vanke will be able to boost its asset turnover and enhance its liquidity through its partnership with the American private equity firm.

Formation of a commercial management company in order to manage the leasing and operation management of the nine commercial properties in China has also been planned by the partners.

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Source: TendersInfo (India)

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