The private equity real estate firm Prax Capital has invested $29.3 million in a joint venture with listed land development company China Housing & Land Development, in a bid to capitalise on the growing population of Xi’an, the capital of China’s Shaanxi province.
The Shanghai-based firm said in a statement the investment would be used to develop China Housing & Land Development’s 79-acre Baqiao residential project. Prax, which has offices in Shanghai, Hong Kong and Miami, said 49 acres of the site would be dedicated to housing. The investment is expected to be supplemented by housing sales and with a RMB1 billion ($146 million: €126 million) credit line from China Construction Bank, agreed in 2008.
William Xin, chief financial officer of China Housing & Land Development, said: “We reasonably expect the joint venture project to generate about RMB5 billion in revenues over its five-year life through 2014.”
According to China Housing & Development, Xi’an will grow in population from 3.1 million people in 2007 to 5.3 million people in 2020