Federal Development Unveils China Expansion
Federal Development LLC has entered into four partnerships to develop mixed-
use real estate throughout China. The multi-pronged project marks the
Washington, DC-based firm’s initial foray into the Chinese market.
“China is going to experience somewhere between 8% and 10% growth next
year, probably the largest of any of the major economies throughout the world,”
says John Infantino, chief executive officer of Federal Development.
Federal has teamed with Sunjoy Enterprises, a quasi-private arm of the Chinese
Department of Agriculture, to develop three mixed-use resorts, totaling roughly
2,000 acres, in Shanghai and Huangshan. Plans include hotel and residential com-
ponents at all three sites and a proposed conference center in Huangshan.
Construction will likely begin in two years, with an anticipated build-out of four
years, Infantino says. He pegs the total investment at around $1.5 billion.
The Peoples’ Government of Zhenjiang, Dantu District, has also partnered with
Federal for a 500-acre development that will include single-family homes, a golf
course, hotel, sports center and waterfront recreation park in Zhenjiang City. The
estimated cost for the total development is approximately $1.6 billion.
Meanwhile, the developer is working with China Olympic Sports Industry LLC
to create sports education and recreation facilities. The team will evaluate many of
the sites of the summer games for redevelopment or conversion. Infantino antici-
pates between $100 million and upward of $1 billion in development opportunities.
In a joint venture with Hong Kong-based logistics company CDSR
Development Group, Federal will also develop a roughly $100-million cargo distri-
bution facility at the Nanchang Airport.
To facilitate its pipeline, Federal established an office in Shanghai in August and
plans to open another in Shenzhen by year’s end, says Infantino.—Danielle Douglas
Equity International Invests in Brazilian Firm
With a $100-million investment in AGV Logistica of Sao Paulo, Brazil, Equity
International now holds a stake in four companies in the country. The Chicago-
based firm also has an interest in Bracor, Gafisa and BR Malls in Brazil.
“We find the scale of Brazil, what we see as inefficiencies in the capital markets,
the emerging middle class, deep management talent pool and evolving real estate
fundamentals attractive,” says Thomas McDonald, chief strategic officer of Equity.
The executive would not divulge the firm’s percentage of ownership in the logis-
tics company, but says, “It’s consistent with all of our investments in that we have
an important seat at the table in terms of the operations and future goals.”
The partners, he says, are pursuing an organic growth strategy for the company,
which manages storage and materials transportation for such industries as animal
products. “The idea is to get more wallet share of the existing clients as well as
move into new vertical deals, mainly human health, cosmetics and banking.”
McDonald adds that Equity is also
interested in undertaking local acquisi-
tions to expand AGV. “It’s a very frag-
mented market,” he says, “There are
few well-capitalized, institutional busi-
nesses and AGV is in a position to
quickly, and relatively easily, acquire
these companies and integrate them
AGV Warehouse in Vinhedo, Sao Paulo into its platform.”
AGV operates 30 facilities in 11
states across Brazil, comprising 170,000 sm of dry storage and 150,000 cm of cold
storage. At the end of last year, the firm opened the largest modern warehouse in
the region, a 58,000-sm build-to-suit in Vinhedo, Sao Paulo.—Danielle Douglas
INTERSTATE HOTELS OPENS
MOSCOW’S FIRST HILTON
Moscow—Interstate Hotels & Resorts
of Arlington, VA has opened and is
managing the first Hilton-branded hotel
in this capital
city. The 273-
which is owned
by JSC Sadko,
went a two-year
as an indoor
ballroom and 7,000 sf of meeting
space. This is Interstate’s eighth prop-
erty in Europe.
EIGHT ASSETS IN SWEDEN
Stockholm—Locally based property
company Kungsleden AB has tucked
eight commercial assets into its portfo-
lio for a total of SEK365 million.
Located throughout central Sweden,
the properties house the newsrooms of
several regional publications. The
assets comprise a total 52,000 sm of
leasable space. The Stampen Group,
the country’s largest newspaper owner,
is the seller. The transaction is slated to
close on Oct. 1.
TIME EQUITIES, NOVA RIDGE
PAY $7M FOR OFFICE BUILDING
Toronto—A joint venture of New York
City-based Time Equities Inc. and Nova
Ridge Development Corp. has acquired
1670 Bayview Ave., a 40,000-sf office
building here, for $7 million. The team
plans to convert the property to office
condominiums and create smaller office
units, which are in high demand in the
local office market. The office condominiums are expected to be available
for purchase next spring. ◆
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