Developers and investors
The business park sector is now attracting international developers and investors, reflecting the robust long-term demand fundamentals offered by business parks as well as due to the strong competition and tighter regulations in commercial property.
Ascendas, Goodman, Frasers Property, Shui On and CapitaLand have, to date, been the most active international developers.
A number of US investors such as GE, Blackstone, Morgan Stanley and Goldman Sachs have all expressed interest in the business park segment.
"The credit crunch affecting the US market in 2008 is put ting a new spotlight on investment opportunities in China, but the long-term impact on the China businesses park investment market remains to be seen," said Stuart Ross, head of Industrial China for Jones Lang LaSalle.
So far, there are very few dedicated domestic business park developers-Software Park China, which developed Dalian Software Park, is currently the most active.
However, the chances offered by the business park market are starting to lure more local players, with companies such as Raycom and TecPark Development now entering the arena.
So far, there are only a limited number of projects on the market that meet international investment standards, which together with the opaque business environment have constrained developers' and investors' expansion programs.
Most investors are adopting a cautious approach, but they are confident about growth prospects over the next five years.
