Tishman Speyer, a global real estate developer and investor, has closed the first RMB Fund by a foreign developer. The firm raised 1.2 billion RMB (approximately $190 million) solely from Chinese investors and will invest it in the development of a prime site in Suzhou. The project will consist of two towers totaling 1.23 million sq. ft.), featuring both commercial office and retail space and luxury residences.
Hwabao Trust, a leading trust company in China, is a cornerstone LP investor in the fund. Noah Holdings Limited serves as the fund’s exclusive financial advisor.
The project site is located in the Suzhou Industrial Park (SIP), in Suzhou’s central business district on the west bank of Golden Rooster Lake. It consists of two parcels straddling Suhua Road that will have direct access to a major subway line that began operation earlier this week.
The buildings will be constructed according to LEED Gold criteria and the office space will be marketed primarily to prominent multinational and domestic companies, as Tishman Speyer has done successfully in its developments throughout the world.
“The establishment of this fund is a watershed event in the evolution of China’s capital markets,” Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said in a statement. “In addition, the ongoing economic growth in the immediate region and the local infrastructure improvements that are underway make this a very good time to develop superior-quality properties to serve the needs of world-class tenants. We look forward to adding a landmark to the superb SIP master plan.”