On April 15th, President Zhang Zi’ai and Assistant President Xu Yongli attended the ceremony to sign the agreement between China Orient Asset Management (International) Holding Limited or COAMCI and Great Eagle Holdings Limited. Both sides agreed to jointly set up a closed-ended fund targeting at investment in properties in the U.S. (“US Fund”) and an investment fund targeted at financing real estate companies operating in China (“China Fund”).

The US Fund

Under the terms of the agreement, China Orient International, committed to investing USD 150 million, will hold a 20% interest in the General Partner of the U.S. property fund. Great Eagle will own an 80% interest, committed to injecting three of its office properties in San Francisco with a total area of 835,000 square feet. The General Partner will raise capital from other Limited Partners, with a total commitment, including committed capital of Great Eagle and China Orient International, of up to USD 1 billion by the closing of the U.S. Fund. Both sides agreed that the American economic recovery was gaining momentum and there would be a greater demand for office buildings and the rent would be on the rise.

The China Fund

At the same time, Great Eagle committed to investing USD 100 million in an investment fund which was to be launched and managed by a joint venture led by China Orient International and itself. With a target fund size of up to USD 1 billion, the investment fund offers financing to real estate companies operating in China. Given COAMCI’s track record in asset management and structured financing, with its prudent financial policy and stringent risk control system, Great Eagle believes that COAMCI could deliver outstanding performance. 

President Zhang Zi’ai put it this way: “2014 is a year of deepening reform for our country. The reform in the fiscal system, taxation, financial sector and state-owned enterprises will bring more and more dividends. The development of different segments of the domestic real estate market and the overseas investment made by Chinese companies will generate more vitality and development space for our business. Therefore we feel confident that our cooperation will bring substantial achievements, good economic returns and a bright future for strategic cooperation by drawing on each other’s strength.”

Other senior managers including the general manager of the Risk Management Department Liang Senlin, Co-presidents of China Orient International Ma Tengying, Zhong Guoxing and Zhang Zhi, also attended the ceremony.