Global Investment House, a UAE-based investment bank and asset management company, has invested $44 million (€28 million) in a development in the city of Liuzhou in China through its Shariah-compliant fund Global Asia Real Estate Fund.
The investment is the fourth deal for the fund, which was closed in November of last year with approximately $75 million of committed capital. The fund is focusing on India and ChinA and has made three investments, two in China and one in India.
The project, expected to be completed by the end of 2009, is being done in partnership with Singapore developer Unionmet, which has already successfully completed a public auction for the distressed asset in January. The firm says it expects the investment to deliver a 25 percent IRR.
Liuzhou, located in Guangxi Province in Western China, has one of the highest GDPs in the province, according to government statistics.
The Global Asia Real Estate Fund is now 85 percent invested. The fund is the third real estate fund for the firm, which has also launched Global U.S. Real Estate Fund and Global GCC Real Estate Fund.