Greenland HK launches $8bn fund with Kuwait, announces new strategy

April 26, 2016 5:54 pm

Skyline of Kuwait City illuminated at night, Middle East. (Image: Alamy)

Greenland Hong Kong Holdings Ltd has signed a deal to set up an US$8 billion real estate fund with Kuwait Strategic Investor and to take a stake in a luxury New York City development, it said on Tuesday.

Greenland Hong Kong, the subsidiary of China’s state-backed Greenland Group, said it would issue 459,005,021 convertible preferred shares to Kuwait Strategic Investor’s Al Waseet International. Conversion of the shares would make Kuwait Strategic Investor the second-biggest shareholder in Greenland Hong Kong.

In exchange for the shares, Greenland Hong Kong would acquire a 41 percent effective interest in the luxury Project Lane real estate development in New York City.

The US$8 billion joint real estate fund would invest in a range of high-end residential and commercial properties and would begin “in-depth cooperation with several Middle East sovereign funds”, Greenland Hong Kong said in a statement.

Greenland Hong Kong also said the deal marked a new strategy in which it would become an “asset light” macro asset manager instead of just a property developer.

It also said it would be involved in internet financing.


By Reuters
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