TCT – BT

TCT to start private equity funds in China

TREASURY China Trust (TCT) has received the Chinese government’s equity investment management licence enabling it to establish an equity investment management business in Shanghai.

This is a major step in TCT’s growth as a significant entity in the Chinese business sector, its trustee manager, Treasury Holdings Real Estate Pte Ltd, said yesterday.

‘This is a major coup for TCT, providing as it does direct access to China’s huge store of renminbi deposits whilst dramatically expanding TCT’s reach and prospects of influence within the Chinese market,’ said Richard David, chief executive officer of TCT.

The licence permits TCT, through its wholly-owned Shanghai-based subsidiary, to raise domestic renminbi capital in a private equity format for reinvestment across a multitude of investment classes.

Additionally, the business approval allows TCT to act as a general partner and to proactively manage renminbi invested funds.

TCT is in discussions with a number of domestic insurance companies and private banking units with the intention of launching its first fund this year.

Next month will see the completion of TCT’s Beijing Logistics Park, which is being put up for sale.

‘It has become a highly specialised industry, and in this context given TCT’s stated focus in the short to medium term on China’s burgeoning retail sector, it is appropriate that this property be marketed for sale,’ said Mr David.

The 75,028 sq m logistics project has achieved 100 per cent leasing pre-commitment.

The leases, signed by China’s largest online retail platform Taobao and logistics provider Shun Feng Express, exceed the rental established for the property, which will provide in excess of 30 million yuan of annual revenue.

TCT units rose 2.5 cents to close trading at $1.34 apiece yesterday.