UBS Global Asset Management and Gemdale Corporation announced today the second successful closing of its joint-venture product, following the decision by PGGM of the Netherlands to commit up to USD 75 million into China real estate. Both UBS and Gemdale welcome the commitment from the Dutch investor, which brings the size of this China real estate initiative to almost USD 200 million.

The joint-venture product saw its first successful closing on March 31, 2010, with over USD 100 million in commitments. The program invests in residential development projects in second-tier cities in China, with a focus on geographically diversified investments.

Gemdale Corporation, an experienced and successful residential developer in China, has already committed USD 45 million to two residential developments on behalf of the program.

An exit from the first investment is expected in 1Q11, following a highly successful residential sales program. The additional committed capital will allow the joint-venture product to seek other attractive development opportunities in China's residential real estate market which is expected to benefit from strong household demand, urbanization, growing middle class and income levels.

Commenting on the second closing, Ke LING, Chairman of Gemdale Corporation said:

“The commitment from PGGM confirms our confidence in the China residential development market and the suitability of the investment program for foreign institutional investors. We firmly believe this initiative can create great value for our partners and serve their strategic asset allocation needs.”

John FRASER, Chairman and Chief Executive Officer of UBS Global Asset Management added:

“This further underlines the success of our real estate joint-venture product with Gemdale. Investor confidence in the collaboration is high and this additional capital will allow this initiative to seek other attractive development opportunities in the Chinese residential real estate market. ”