Dalian Wanda Group opens opportunity for crowdfund investors in Chinese cities
While real estate crowdfunding/crowdinvesting is starting to gain traction in the U.S., the UK and Canadian markets, the largest private Chinese real estate developer, Dalian Wanda Group, joins 99 Bill to develop real estate projects following this model: a project called Stable Earner Number 1, the first Wanda product to be offered exclusively via Internet.
The project is intended to raise funds to invest in Wanda plazas across several cities in the country. Dalian Wanda Group is already owner of several hotels, theaters, department stores and malls and, hence, promises backers the opportunity to own shares of quality real estate assets while taking advantage of the experience of a solid real estate developer.
The expected return rate is around 12% yearly, based on profits from plazas (mainly rentals), and the company requires a minimum investment of Rmb 1,000.00 (around $161.00). The company did not put up a cap on the maximum amount one can invest.
The initiative shows that crowdfunding is trending in the world and that it is a segment (of the finance industry) that is here to stay. It is opening up completely new ways of financing, showing and testing products and services to the world.
In addition, all of this seems to be only the beginning. After all, companies like EquityEats and Fundrise.com have been created in the last two years, and regulations for this market are only starting to be sanctioned. No one can know for sure, at this point, the numbers and forms these new real estate investment crowdfunding services will have going forward, but the fact is that big players like Wanda and World Trade Center groups are jumping in the bandwagon.
The effects are yet to be seen in real estate prices and returns, as well as the impact in investors’ finances. But one thing is certain: if you have real estate related projects, and need to raise money to finance them, you should seriously think about crowdfunding it. You may be surprised on the amount raised and how good the terms can be for you.