Tishman Speyer Properties LP raised 1.2 billion yuan ($190 million) from Chinese investors for a real estate fund that will develop a two-tower, mixed-use project in Suzhou as the local economy expands.
The 1.23 million-square-foot (114,300-square-meter) development will include luxury residences, offices and retail space, the New York-based property developer and investor said in a statement today. The fund was raised solely from Chinese investors and is the first of its kind from a foreign developer, Tishman Speyer said.
“The establishment of this fund is a watershed event in the evolution of China’s capital markets,” Jerry Speyer and Rob Speyer, the company’s co-chief executive officers, said in the statement.
Economic growth in the Suzhou region and local infrastructure improvements have made it a good time for the project, the Speyers said. China’s economy expanded by 8.1 percent in the first three months of 2012 from a year earlier.
The development site is in Suzhou’s central business district on the west bank of Golden Rooster Lake, according to the statement. The property consists of two parcels that straddle Suhua Road and will have direct access to a subway line that began operating this week, Tishman said.
Hwabao Trust Co., based in Shanghai, is an investor in the fund, and Noah Holdings Ltd. (NOAH:US) is the fund’s financial adviser, according to the statement.
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