FFWD.L Regulatory News (FFWD)

17 Jan 2007 07:00

London Asia Chinese Private Equity17 January 2007 17 January 2007 London Asia Chinese Private Equity Fund Limited("LACPEF" or "the Fund") Invests £2.6 million in Chinese Real Estate Business LACPEF (AIM: LCP.L), the China focused investment fund, announces that it hasinvested £2.56m in China Real Estate Services Ltd ("CRES" or the "Company"). Established in 1997, CRES is one of the major real estate consultancy andleasing companies in Beijing. It offers residential relocation services as wellas corporate, residential and commercial leasing and property acquisitionservices for both buyers and sellers. CRES has over 400 staff, spread across 26offices in Beijing, a city with a population of 15 million, and four regionaloffices in Shijiazhuang, Baoding, Hefei and Tianjin. As well as providing working capital headroom, the investment from LACPEF willprovide the funds required to enhance the Company's technology infrastructure,specifically online direct sales, and extend its presence into 20 major cities,giving CRES a foothold across 8 provinces. The additional funds will also enablethe expansion of the property acquisition services division, a highly profitablearea for the Company. Mr Xu Yanjing, Chief Executive of CRES, said: "The economic development in Chinahas resulted in huge demand for both commercial and residential property. Themajor cities are growing at an above average rate, causing many workers to moveto where there is employment, which is driving the growth of the inner cityproperty market. As the residents of the main cities become wealthier, steppingonto the property ladder is becoming a priority. This funding will enable CRESto expand its existing platform across the major cities in China." Commenting on the investment Simon Littlewood, Executive Director of the Fundsaid: "The property sector in China is maturing rapidly, as more and more peopleuse their increasing wealth to become property owners. China's real estateservices industry is fragmented, and CRES is in an excellent position to becomea major chain in China." -ends- For further information please visit www.londonasiafunds.com or contact: John West/Matt Ridsdale Simon Littlewood Hugh FieldTavistock Communications London Asia Capital Collins Stewart LimitedTel: 020 7920 3150 Tel: 020 7355 7928 Tel: 020 7523 8000 This information is provided by RNS The company news service from the London Stock Exchange