The real estate arm of US asset manager Invesco has announced that it will form a joint venture focused on China’s rental housing market.
Invesco Real Estate and Ziroom Inc. – a tech-driven rental housing service provider in China – have formed a new joint venture called Izara Holdings, according to a statement.
The venture is a strategic partnership that will serve as the exclusive platform for both companies to invest in and operate rental housing assets across China. The platform aims to offer institutional-quality rental communities that provide «superior living experiences for residents». Furthermore, Izara will also explore innovative investment and securitization models within the rental housing sector.
First Project
Izara’s inaugural project will be a large-scale, purpose-built rental housing development in the Shijingshan District of Beijing with 1,500 rooms and an expected total investment of 1.2 billion Chinese yuan ($170 million). The project is targeted to open in 2027.
«There is a fundamental shortage of institutional-quality rental housing in primary cities such as Shanghai and Beijing,» commented Calvin Chou, head of APAC, Invesco Real Estate. «As demand remains supported by strong demographic trends and the need for modern and affordable rental accommodations, we believe this joint venture will fill a clear market void while setting new industry benchmarks.»
Invesco Real Estate has 606 employees in 21 regional offices across the US, Europe and APAC. As of 30 September 2024, it had $87.9 billion in real estate assets under management. It also manages approximately $14 billion in rental and residential assets, encompassing over 45,500 units.
