APAC Realty eyes expansion into China
It formed a joint venture with a real estate consultant and investment firm.
APAC Realty Limited entered into a joint venture agreement with real estate consultancy firm Hainan Zhong Zhi Sheng He Real Estate Investment Consulting and investment firm Bei Guo Tou (Shanghai) Equity Investment and Fund Management.
The joint venture, called ERA Hainan Real Estate Marketing, will conduct brokerage and resale brokerage businesses, as well as establish training for and licensing of real estate agents in Hainan.
“This agreement presents APAC Realty with an opportunity and key milestone to penetrate the China market,” the company said. The full range of real estate agency service is similar to those offered in Singapore such as brokerage services covering new sales, resales, and leasing in the residential and commercial sectors.
APAC Realty and Zhong Zhi Sheng He Real Estate Investment Consulting will each own 40% shareholding in ERA Hainan Real Estate Marketing, whilst Bei Guo Tou (Shanghai) Equity Investment and Fund Management will own the remaining 20%. The registered share capital of the joint venture is $4m (RMB20m).
Moreover, all existing project-sale businesses from Zhong Zhi Sheng He Real Estate Investment will be transferred to the new joint venture. The company has also secured the rights to market over six upcoming projects.
Bei Guo Tou Equity Investment and Fund Management specialises in equity investment and asset management, investment advisory, business consultancy, and management services.
APAC Realty joins other real estate firms that have set their sights on the growing residential market in China. Just recently, Yanlord Land sold 510 out of its 516 apartments worth $600m in Taoyuan Gardens in Nanjing, China during its inaugural launch. Keppel is also expected to benefit from the country as the sell-through rates for most of its projects remained around the national average in H1.