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 with four investment vehicles in Asia, including a China retail fund.