Chinese company to invest in affordable Australian housing

Shanghai-based, Thakral Corporation, has announced new plans to invest in mid-sized residential developments in Australia and the Asia Pacific region.

The company said the move is aimed at providing another source of income with projected returns ranging from 15 and 25 percent and an exit strategy of 12 to 36 months. "We are now investing in substantially de-risked projects which have already secured pre-sales of their units and projects which have received development approval. This means that these projects have genuine value," said Jaginder Singh Pasricha, managing director for Real Estate and Corporate of Thakral Corporation Ltd.

"We will receive our returns and capital when the projects are completed and all units already pre-sold to buyers are settled," Singh told Channelnewsasia. The company will first invest in the Australian market followed by China, India and other Asian countries.

The investments will be through a joint venture company slated to be set up next year. It will be 51 percent owned by Thakral and led by Singh along with four investment bankers.

Currently, Thakral holds commercial and residential properties in Hong Kong and China with a 55 percent share in commercial and retail developer Wujiang Dafa Real Estate Development plus and a 3.5 percent equities investment share in Thakral Holdings, Australia.

Thakral Corporation’s main business is consumer electronics distribution business but is looking into new opportunities to develop its property business.