China has been strengthening the supply-side structural reform since 2015. Under the command of the central government, Guangdong government released the first provincial reform scheme in February 2016, setting goals to “reducing capacity, reducing inventory, reducing leverage, cutting cost, and improving weak links” and regarding the disposal of “zombie enterprises” as the key of “reducing capacity”.

Facing the enormous market of special situation asset management, TCC Capital plans to establish a fund management company with its partners that engage in asset management industry, then set up several special situation funds with experienced real estate developers under the management of the fund management company. The funds will focus on the acquisition of properties in special situation (including idle properties) located in Guangdong and its vicinity areas, from “zombie enterprises” or state-owned enterprises.

According to the preliminary plan, the special situation funds will acquire several properties in special situation by means of the capital raised from real estate developers. Then the fund management company and real estate developers will operate/dispose the properties to realize capital gains. In the future, the fund management company will list the funds on stock markets to raise more capital for the future acquisitions of properties in special situation.

TCC Capital has reached a cooperative intention with a real estate investment company that has more than ten-year experience in Guangdong. The company concentrates on the acquisition/ development of properties and the acquisition/ disposal of non-performing assets, and has completed various property deals with many famous real estate developers. The company has also established cooperative relationships with several giant logistic companies including Goodman Group, Global Logistic Properties, Blackstone and Vanke.