Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

HK-Based Private Equity Firm to Invest US$50 Mil in Shanghai Developer

2013/10/22 by Michael Cole Leave a Comment

Chairman Lin Zhong of CIFI

Chairman Lin Zhong of CIFI

The enthusiasm of international private equity investors for China real estate deals made another appearance last week when RRJ Capital of Hong Kong announced a US$50 million investment purchase of shares in Hong Kong-listed real estate developer CIFI Holdings (Group) Co.

RRJ agreed to buy 257 million newly issued CIFI shares at HK$1.52 per share – a premium of about 4.1 percent over the closing price as of October 16th. The new shares will comprise 4.3 percent of CIFI when the transaction is complete. RRJ already holds $100 million of CIFI bonds.

According to a statement by CIFI, the company will use the new capital to acquire additional projects and purchase land.

Joining the Private Equity China Real Estate Rush

The investment by RRJ occurs as international private equity firms have become increasingly active in purchasing China real estate assets, as well as acquiring shares in developers active in the market.

During September, Henry Kravis, one of the co-founders of private equity giant KKR visited Hong Kong to make known his firm’s intention to spend part of their record $6 billion Asia fund on acquiring China real estate assets. The KKR announcement followed soon after US-based Carlyle Group announced a $400 million investment in China’s warehouse market.

In August US-based financier Sam Zell’s Equity International spent an undisclosed amount to buy into the Redwood Group – which also focuses on China’s warehouse sectors. During the same month, in a move that in many ways parallels last week’s action by RRJ, Blackstone acquired a Hong Kong real estate developer for $322 million – primarily to increase their access to the China market.

Buying into a China Top 50 Developer

Headquartered in Shanghai, CIFI is known for developing small to medium scale residential projects, as well as commercial properties which are generally sold on a strata title basis. The company ranks among China’s top 50 real estate developers by revenue and is headed by chairman and executive director Lin Zhong. Earlier this year, CIFI estimated that it would achieve 31 percent growth in revenues compared to 2012.

RRJ Capital has only been around since 2011, but it succeeded in raising US$3.5 billion for its second fund earlier this year, thanks to the prominence of the Malaysian-born brothers, Richard and Charles Ong who founded and operate the firm. RRJ’s two funds combined give it a total funds under management of US$5.9 billion.

Before setting up RRJ, Richard Ong had a long career with HOPU and Goldman Sachs, and Charles spent 10 years managing investment projects for government-linked Singapore investment firm Temasek Holdings.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: Blackstone, Carlyle Group, CIFI Holdings, Equity International, Goldman Sachs, Henry Kravis, Hopu Investment Management, Kohlberg Kravis Roberts, real estate developer, Richard Ong, RRJ Capital, Sovereign wealth fund, Temasek Holdings

https://player.vimeo.com/video/658501079?h=a77da22425

Leave a Reply

Your email address will not be published. Required fields are marked *

Asia Proptech Report 2022 (New technology)

Get Mingtiandi Delivered

MTD TV

MTD TV Panel: Vietnam Logistics Real Estate Gains Favour With Investors in 2020
PGIM, Yardi on How Tech Powers Asian Real Estate Innovation: MTD TV

More MTD TV Videos>>

People in the News

Serena Teo Ascott
Asia Real Estate People in the News 2022-07-04
trent iliffe
ESR-Logos REIT Adds Trent Iliffe to Board, Appoints Karen Lee as Deputy CEO
serene nah kerry
Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board
Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-07-04

Serena Teo Ascott

2022 has now passed the mid-year mark and that milestone has spurred a wave of board moves this week including new … Read More>>

ESR-Logos REIT Adds Trent Iliffe to Board, Appoints Karen Lee as Deputy CEO

trent iliffe

The manager of ESR-Logos REIT announced a flurry of people moves on Friday to round out the board of directors and … Read More>>

Kerry Properties CFO Resigns After Less Than 8 Months on Developer’s Board

serene nah kerry

Hong Kong-listed developer Kerry Properties waited until the city was transfixed with the arrival of a visitor from the … Read More>>

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

More Industry Professionals>>

Latest Stories

Louise Kavanagh - Nuveen
Bouwinvest, TIAA Boost Nuveen Japan Housing Fund to $100M First Closing
Hong Kong 2 IFC BOC CK Centre
New Hong Kong Office Leases Fall 6.7% in H1 as Vacant Space Hits Record High
Eight Reasons Why Data Sharing Brings Benefit in Infrastructure Design

Sponsored Features

Eight Reasons Why Data Sharing Brings Benefit in Infrastructure Design
Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.