Carlyle plays down villa sale plan

SHANGHAI: Private equity firm Carlyle Group has denied reports that it was selling its 110 villas in Minhang District of Shanghai to raise capital and said only a small proportion of the properties are being put on the block.

Through an announcement published on portal sina.com on Monday, Carlyle said reports that it was selling the villas at a loss were inaccurate and published without checking the veracity of the source. Carlyle stressed that it was satisfied with the villa investment and will continue to hold the property for a longer term.

In December 2006, Carlyle bagged 110 villas for $120 million from the cash-strapped Shanghai CRED (China Real Estate Development Group) Real Estate Stock Co Ltd. At that time, market observers expected Carlyle to make considerable profits from the villa project. Carlyle refurbished nearly 40 villas and subsequently leased them out. Located near the annual Tennis Masters Cup venue of Qizhong Tennis Center, the villas are certain to make profits, said Fu Qi, a researcher with E-House China R&D Institute.