A FLURRY of private equity funds buying commercial property in China is reviving syndicated loan volumes in the region.

Firms including Blackstone Group LP and GAW Capital Advisors are in talks with banks in Asia for loan deals of more than US$2 billion so far this year to buy office towers mainly in Beijing and Shanghai. The pipeline of such deals is expected to grow, which will help broaden financing opportunities for lenders, according to Standard Chartered Plc. Overseas firms purchased a record US$9 billion of commercial property in China last year.

Commercial property investment in China by foreign firms surged 62 percent to 78 billion yuan (US$11.6 billion) in 2018, the largest amount in data dating back to 2005, according to CBRE Group Inc. In contrast, China’s acquisition-related syndicated loan volumes slumped about 34 percent to US$16.6 billion last year amid lackluster economic growth and tight capital control in the country.

HSBC Holdings is seeing increased interest from foreign investment firms for property in China, according to Steve Willingham, Hong Kong-based co-head of infrastructure and real estate finance for Asia Pacific. “Investors consider China a growth market opportunity compared to markets like the United States and Europe.”(SD-Agencies)