Ivanhoé Cambridge announced today that it plans to increase its real estate investments in China and that it is actively seeking opportunities to add assets to its portfolio. In addition, to better support its investment strategy, Ivanhoé Cambridge has decided to wind down the operational component of its property management activities and to allocate its resources to asset and investment management. Its business office will remain in Shanghai.
“China continues to be a priority market for Ivanhoé Cambridge and we intend to strengthen our presence within the country over the long term. The real estate market in China is very large and continues to grow rapidly, apace with the country’s economy,” said Claude Sirois, Executive Vice President, Commercial Investment and Emerging Markets. “We intend to further increase our investments and to maintain and develop closer relationships with a number of select, renowned, local real estate partners.”
More specifically, Ivanhoé Cambridge will continue its close association with its Chinese partner, Bailian Group, to maintain the high-quality management of its jointly-owned La Nova property in Changsha.
“Thanks to our first-hand local experience, we now have a much deeper understanding of the Chinese market and its challenges,” added Mr. Sirois. These changes will allow us to better position ourselves in this evolving market and reach our investment objectives.”
The current core investment and asset-management team will remain in place, while the number of employees within the operational teams will decrease over the coming months.