For Investors
New Frontiers China Residential
New Frontiers China Residential LLC, managed by our team, is an opportunity fund focusing on residential developments in China.
The Fund will make capital investments in, and enter into joint ventures with, developers who build high quality mini-condominiums in areas where the prices of homes are more affordable to the local population.
Our team created a unique structure combining the underlying principals of Waterfall Structures and partnership concepts acceptable to the Chinese developers. This structure minimizes the investment risk for our investors and rewards the efforts of our developer partners.
1. Full-service Investment Vehicle
Our ultimate goal is to provide a reliable full-service international investment opportunity. For the investors, our team will handle the complicated taxation in China, transferring money in and out of China, stay updated on the constant regulation changes, and identify reliable local partners.
Besides corporate counsel, we also have in-house legal counsels that are license in both US and China to help manage cross-border investment.
As an extra protection to the investors, both our company and New Frontiers China Residential LLC are incorporated in the US which will make them subject to US laws and regulations.
2. Why New Frontiers?
Private real estate ownership in China started 20 years ago. The real estate market is still very young and less integrated in China. The top 10 Chinese developers only have less than 3% of the domestic market share in 2005. The top 10 US developers holding nearly 30% of the market share in 2005.
International investors are chasing top Chinese developers due to a lack of local expertise, cultural differences and language barriers. Competition on large developers has compressed the investment return for these international investors.
Our local expertise secures high return. Besides all our members obtained advance degrees in the US, most of us grew up in China and have worked directly with Chinese developers. Our cultural connections and local experience furnish us to manage our investment efficiently and thus secure a high return.
3. Why invest in China Now?
In 2006, the housing sector in US started to fall. On the other side of earth, the fundamentals for the housing sector in China continued to improve. Every year, urbanization and industrialization relocates 20 million people into urban area from rural area. Robust growth of economy and household income are releasing current urban residents' desire for better and bigger housing.
Due to its growing population, deficient livable land, and inflexible public land supply system, the Chinese government implemented a parade of new policies to decrease both supply and demand in the past 4-5 year. However, housing price started to increase from several major cities in 2004 and 2005. In 2006 and 2007, housing price started to increase nationally. The tightening monetary policy has resulted in equity shortage in China.
In the next several years, there is no doubt that Chinese economy will remain robust growth; Chinese currency will appreciate comparing with US dollar; Chinese government will implement more policies to protect the sustainable growth of housing market.
Overall, housing sector in China should continue to experience further expanding and pricing growth. We will see more and more international investors to get involved in housing market in China in the oncoming years.
It is our pleasure to share our research with you. For further information, please contact with us by email penny.liu@nf-investment.com.
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