Distressed Real Estate Asset Investments in China
With a target-rich RMB 10 trillion market for distressed property assets, China presents an enormous opportunity for experienced investors. As China reopens into the post-pandemic era, the government has taken steps to encourage the introduction of foreign capital into the non-performing asset space.
Shanghai Quanshan Business Consulting Co., Ltd. helps experienced foreign distressed property investors to create and fund bespoke opportunities:
Active Chinese managers construct unique portfolios of deeply discounted distressed property assets, with a mix of non-performing loans, equity stakes, and real property, having varying cashflow, term, use, and other characteristics.
Experienced, well connected managers can access close channels within the 5 national asset management companies (AMCs), affording deal flow and critical information about assets, debtors, and guarantors.
Asset are priced through competitive negotiations tuned to region, industry, and timing, resulting in very deep discounts which allow for significant upside upon completion of restructuring and disposition.
Dedicated teams with deep experience in compliance and audit facilitate informed risk management.
Upon acquiring the selected portfolio assets, fund managers employ a full suite of investment operation services to restructure the assets in coordination with local and regional financial institutions, property developers, operators, and industrial investors.
Once assets have been financially restructured and refitted to highest and best use, professional marketing and disposition teams complete the exit on behalf of the fund and its investors.
Foreign investors may invest directly into individually constructed distressed asset portfolios through offshore USD denominated funds which are structured to facilitate foreign investment while abstracting issues of currency conversion and cross-border transfers.