China Real Estate Private Equity

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Our China Real Estate Market Thesis

The Chinese real estate market remains the most transparent way to invest directly in RMB denominated assets.  Although the market itself remains immature, compared with public Chinese equities and debt, the real estate market gives foreign investors the transparency needed in order to perform both due diligence and to forecast likely future performance. MGI Pacific generates alpha for its partners and clients by using its proprietary data sets and algorithms to perform top down analysis to identify geographic catchments that meet their investment criteria.  Following this, our acquisitions team sources suitable opportunities consistent with the fundamental data and client profile.

Investment Structures

  • Co-Investment Sourcing
  • Offshore Equity
  • Onshore Equity
  • Onshore Asset
  • Joint-Ventures
  • Club Investment

Summary

China is entering the second phase of its real estate development cycle which will lead to a significant decline in the number of active domestic developers as alpha generation becomes more reliant on allocation strategy, operations, financing, and marketing and less on land acquisition capabilities.  This is similar to the experience of other Asian economies that have moved up the economic value chain.

 
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