Citigroup earmarks $3.5bn for overseas real estate

21 February 2007

Citigroup is to raise $3.5 billion dollars to fund further real estate investments in emerging markets.

The fund which is called Citigroup Venture Capital International Growth Partnership II LP is earmarked for investment in real estate in China, India and up-and-coming economies in South America and Eastern Europe.

News of the US banking giant's intentions comes at a time when recent statistics show that US banks have raised over $5 billion for investment in real estate markets abroad since the start of 2006, with Citigroup recently announcing that a $1.9 billion fund for investment in Asia.

Commenting on the developments in a statement, Joseph Azrack, chief executive officer of Citigroup Property Investors name said: "Asia is a compelling market for private equity real estate investments."

The surge in activity in the global property market comes as fund managers seek to maximise returns from assets tied to annual pension funds in the booming economies.

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