CIFI Holdings, GIC to Launch USD1bn Property Investment Platform

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Chinese developer CIFI Holdings [0884:HK] and Singapore’s GIC on September 11 signed an RMB7bn (USD1.025bn) deal to launch a residential property investment platform based in eastern China’s Yangtze River Delta, as reported by Deal Street Asia on September 14. As part of the deal, CIFI will own a 51% stake while GIC will hold the remainder 49%.

The deal comes as part of the two firm’s strategy to expand in the growing Mainland property market, which has been showing positive signs of recovery since the pandemic-related lockdown. Industry research firm claims that in 1H20 China's property investment and development industry was valued at RMB6.28tr (USD919bn), up 1.9% YoY. Economic research firm CEIC's data indicates that in August, the country's housing prices grew 6.8%, up from a 5.7% increase in July. In a separate deal signed in January, Hong Kong-listed CIFIC rental service subsidiary Umihome partnered with GIC to launch a USD570m investment platform targeted at long term apartment rentals across the mainland. To data, Umihome has 69,000 apartments under management in 20 cities across China. In 1H20, CIFI recorded RMB23.02bn (USD3.37bn) in revenues, up 11.3% YoY, while its net profits increased 11.2% to RMB3.19bn over the same period.

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