Harvest and Grosvenor Fund Management form joint venture for Chinese real estate fund management

Harvest Fund Management (“HFM”) and Grosvenor Fund Management (“GFM”) have joined forces to launch a dedicated real estate fund management business investing in Greater China to be led by Mr Rong Ren.

25th September 2012

Harvest Fund Management (“HFM”) and Grosvenor Fund Management (“GFM”) have joined forces to launch a dedicated real estate fund management business investing in Greater China to be led by Mr Rong Ren.

The business, named Harvest Real Estate Investments (“HREI”), will manage Greater China real estate strategies for investors globally, through the creation of both U.S. dollar denominated and Renminbi denominated funds. The business seeks to identify attractive real estate opportunities across multiple sectors within Greater China’s emerging real estate industry for both international investors and domestic investors in China. The business also plans to bring global real estate opportunities to domestic investors in China.

HFM, which is China’s second largest asset manager with approximately USD37 billion in assets under management, will invest into the business through its alternative investments arm, Harvest Alternative Investment Group (“HAI”).

Grosvenor has been active in Asia for nearly 20 years. GFM, its fund management business, has funds under management of £5bn with four investment vehicles in Asia, including a China retail fund.

HREI is a unique platform committed to product innovation and delivering outstanding investment performance, alongside shareholders who share a common view on achieving high standards of corporate governance, reporting and transparency.

Mr. Ren is HREI’s Chief Executive Officer and leads a team of 20 professionals based in HFM’s offices in Hong Kong and Beijing. In addition, experienced professionals from both GFM and HFM will also join the dedicated real estate platform.

Dr. Henry Zhao, CEO of Harvest Fund Management, said: “Harvest is extremely pleased to have formed this joint venture with Grosvenor and Mr. Ren and his team. The team has an enviable track record in the China real estate market and is passionate about delivering results for investors. From our perspective, this business is an integral part of the Harvest Group’s continued expansion into the alternatives sector and global capital markets.”

Lindsay Wright, CEO of Harvest Alternative Investment Group, said: “This is an exciting milestone for HAI. We take a partnership approach with leading managers like the HREI team, while preserving the entrepreneurial spirit that makes them successful in delivering superior investment solutions to our investors.”

Jeffrey Weingarten, CEO of Grosvenor Fund Management, said: “Harvest Fund Management have unparalleled access to institutions and high net worth individuals in the domestic Chinese investor market and a strong track record in fund raising, investing and realising returns. Combining these qualities with Grosvenor’s long history of international real estate investing and fiduciary relationship management and such an experienced management team forms a powerful platform that will create value for our clients. As well as giving our existing international investor partners access to this exciting market, we look forward to building long-term relationships with Chinese investors with domestic and international fund offerings.”

Rong Ren, CEO of Harvest Real Estate Investments, said: “I am delighted to lead this platform with the support of both Harvest and Grosvenor and to build it into an industry-leading fund management business. More importantly, I am most excited in leading a team that has a strong track record behind it and we are looking forward to bringing innovative investment products to investors globally.”

ENDS

For more information contact:
Naomi Curtis/Sorrel Basher, Press Office
Grosvenor
020 7312 6479/6101
pressoffice@grosvenor.com

Notes to Editors

Harvest Fund Management (HFM)

HFM was established in March 1999 and today ranks second out of 60 funds management companies in China in terms of assets under management HFM is headquartered in Beijing and has 10 offices throughout China. HFM currently manages approximately US$37 billion and employs 490 employees.

HFM’s core business is managing mutual funds for domestic institutional and retail investors. It currently manages 17 equity funds, 6 bond funds and 1 money market fund. HFM also manages 3 Qualified Domestic Institutional Investors funds that allow domestic Chinese investors to invest in off-shore securities markets. HFM manages these funds through its Hong Kong subsidiary, Harvest Global Investments Limited.

HFM is 40% owned by China Credit Trust Co., Ltd., 30% owned by Deutsche Asset Management and 30% owned by Lixin Investment Co., Ltd.

Harvest Alternative Investment Group (HAI)

Harvest Alternative Investment Group is the alternative investments arm of Harvest Fund Management. In order to bring more innovative products to institutional and retail customers, HFM commenced its alternatives business, with the establishment of HAI at the end of 2010. HREI joins HAI’s platform of best-in-class investment managers which also include hedge fund, credit and private equity strategies focused primarily on Greater China.

Grosvenor Fund Management (GFM)

Grosvenor has a long history including over 50 years of working with investors. GFM offers a range of sector and regional specialist property investment funds which aim to deliver attractive, risk adjusted returns. Operating from offices in China, France, Italy, Japan, Luxembourg, Spain, Sweden, Australia, the UK and the USA, GFM employs professionals with the local knowledge and skills to execute its investment decisions. Aligning its interests with its partners and building long-term investor relationships is of paramount important to GFM.

As at 31 December 2011, funds under management were £5.0bn with 69 investor partners in 28 property funds, club deals and separate account mandates. For further details, please see Grosvenor’s Annual Report & Accounts available at www.grosvenor.com.

Grosvenor Fund Management is part of the Grosvenor Group, which has proprietary investment and development businesses in the Americas, Europe and Asia Pacific. Grosvenor Asia Pacific remains Grosvenor’s vehicle for direct proprietary investment in China focused on a programme of luxury residential developments and long-term real estate investments.

Mr. Rong Ren

Mr. Ren was the founder and CEO of Harvest Capital Partners, a firm which grew into an award-winning China real estate fund platform managing USD1.5bn in equity. He has over 20 years of experience and is an industry veteran in the Greater China investment market and among one of the first foreign investors successfully to complete property deals in China. Mr. Ren was educated in England and has a Master’s degree in Corporate Finance and Investment Banking from the University of Reading.

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