The Duke of Westminster’s fund management company
has joined forces with a Chinese asset manager to tap the region’s burgeoning real estate industry.

Grosvenor Fund Management will launch a real
estate fund management business with China’s second largest asset manager Harvest
Capital Partners, which has approximately US$37 billion in assets under
management.

The business, Harvest Real Estate Investments, will
manage strategies for its global investors through the creation of both US
dollar and Renminbi denominated funds. It will invest in a number of the
emerging sectors that make up Greater China’s burgeoning property market.

The founder and CEO of Harvest Capital Partners, Rong
Ren, will head the team of 20 out of HFM’s offices in Hong Kong and Beijing. Harvest
Fund Management and Harvest Capital Partners will remain two separate and distinct
entities.

HFM is 40 per cent owned by China Credit Trust 30
per cent owned by Deutsche Asset Management and 30 per cent owned by Lixin
Investment. It will invest into the business through its alternative investments
arm, Harvest Alternative Investment Group.

Grosvenor is a multinational proprietary
investment and development company that is controlled by the Duke of
Westminster. It has been active in Asia for nearly 20 years. GFM, its fund
management business, has funds under management of £5 billion (US $8.1 billion)
with four investment vehicles in Asia, including a China retail fund.