Invesco Real Estate, the real estate arm of U.S. asset manager Invesco, has announced the formation of a joint venture with Ziroom Inc., a tech-driven rental housing service provider in China. The newly established venture, Izara Holdings, will serve as the exclusive platform for both companies to invest in and operate rental housing assets across China.
Izara’s primary objective is to develop institutional-quality rental communities, enhancing the living experience for residents. The platform will also explore innovative investment and securitization models within the rental housing sector, which has seen rising demand in urban centers like Beijing and Shanghai.
First Project: Beijing Development
The first project under the Izara platform will be a large-scale, purpose-built rental housing development in the Shijingshan District of Beijing. This project will consist of 1,500 rooms, with an expected total investment of 1.2 billion Chinese yuan ($170 million). The development is slated to open in 2027.
Calvin Chou, head of APAC for Invesco Real Estate, commented on the venture’s potential, highlighting a significant shortage of institutional-quality rental housing in major cities like Beijing and Shanghai. He noted that the demand for modern and affordable rental accommodations is supported by strong demographic trends, and the joint venture aims to address this gap in the market while setting new industry standards.
Invesco Real Estate’s Presence and Assets
Invesco Real Estate currently has 606 employees spread across 21 regional offices in the U.S., Europe, and the Asia-Pacific (APAC) region. As of September 30, 2024, Invesco Real Estate had $87.9 billion in assets under management. The company also manages around $14 billion in rental and residential assets, which includes more than 45,500 units.
This partnership marks a significant move for Invesco Real Estate as it expands its footprint in China’s growing rental housing sector.
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