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 2023 Event Calendar
    • Mingtiandi APAC Residential Forum 2023
    • Mingtiandi Asia Logistics Forum 2023
    • Mingtiandi Hong Kong Focus Forum 2023
    • Mingtiandi APAC Data Centre Forum 2023
    • Mingtiandi Asia Office Strategies Forum 2023
    • Mingtiandi Singapore Focus Forum 2023
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Warburg Pincus Invests $183M in China Rental Apartment Platform

2017/09/05 by Greg Isaacson Leave a Comment

Nova Songyuan Apartment

A Nova apartment on Songyuan Road, Shanghai

Warburg Pincus is betting on China’s rental housing market by redoubling its investment in a rental residence platform it co-founded, Shanghai-based Nova Property Investment. An affiliate of the global private equity giant is committing $183 million to Nova, aimed at fuelling the company’s aggressive expansion in China’s key urban centres.

As part of the deal, Nova’s management team will also invest an undisclosed amount in the two-year-old company that has emerged as a leading owner, operator and asset manager of rental apartments in China. Warburg Pincus made an initial investment of $170 million into Nova, which it co-founded with Chinese entrepreneur Qian Wang in early 2015.

The investment by the US private equity giant comes as China’s leadership pushes for the development of purpose-built rental housing as a solution to the rising cost of homes in China’s major cities.

Rental Housing Platform Eyes “Aggressive” Growth

Joe Gagnon Warburg

Joseph Gagnon of Warburg Pincus

“The follow-on investment of Warburg Pincus will provide strong support for us toward fulfilling our business targets as we continue to focus on expansion in the institutional for-rent apartment sector, a major force in the development and operation of aged and underutilized properties,” Wang, who serves as Nova’s chairman and co-CEO, commented in a statement.

Nova, which has assets under management of RMB 5 billion ($735 million) and 32 projects in operation or under development in Shanghai, is targetting rapid portfolio growth across first-tier cities. The company says it will focus on converting distressed properties into modern rental apartments, with amenities such as shared offices.

“We are very impressed with Nova’s outsized growth in just two years since the company was founded,” said Joseph Gagnon, managing director and head of Asia real estate at Warburg Pincus in the statement. “With a strong foundation in place, we believe there are significant future growth opportunities for Nova, driven by the increasing demand for better-served and quality for-rent apartment, creative and co-working office space in China.”

Nova, which merged with Shanghai-based Yicheng Property Investment in 2016, has a portfolio spanning 190,118 square metres in Shanghai. Properties operated or developed by the company under its BaseLIVING, BaseOFFICE and BaseCO brands include mid-to-high-end housing, co-living facilities, and creative co-working spaces.

China’s Bubbly Housing Market Spurs Leasing Demand

Warburg Pincus, which has invested over $3 billion in Chinese real estate companies, is an active player in the country’s nascent rental housing market. The US private equity firm partnered with China’s Avic Trust last year to pour nearly $300 million into Shanghai-based Mofang Apartment, which operates 30,000 rental units aimed at “white-collar” residents across the country.

The US private equity giant has reaped significant rewards from co-founding new property businesses in China, having previously teamed with Sun Dongping and Jeffrey Shen to set up logistics developer e-Shang in 2011. That warehouse builder is now part of regional logistics platform e-Shang Redwood, and Warburg also teamed with Sun Dongping to establish industrial developer D&J China.

Other real estate players looking to tap the emerging market for rental housing in China include developers China Vanke and Longfor Properties, which are aiming to build a combined total of 180,000 “youth apartment” units offered for lease over the next two years, according to Reuters.

China’s housing ministry last week announced a program to build rental housing on rural land in 13 major cities, including Shanghai, amid a government campaign to tackle a housing bubble and provide affordable dwellings for the public.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: Featured, Joseph Gagnon, Nova Property Investment, Proptech, rental housing, Warburg Pincus, weekly-sp

Leave a Reply

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

Get Mingtiandi Delivered

MTD TV

Allianz, SC Capital, BW and JLL Talk Asia’s New Logistics Real Estate Reality: MTD TV
MTD TV proptech show
COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV

More MTD TV Videos>>

People in the News

Brian Kwon Dexus
Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia
Vida Tandean
CBRE IM Appoints Vida Tandean as Head of Indirect Private Real Estate Strategies in Asia
Henry Bott Swire
Asia Real Estate People in the News 2023-01-30
Liu Weiliang Zhenro
Asia Real Estate People in the News 2023-01-23

More Industry Professionals>>

People in the News

Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia

Brian Kwon Dexus

Australian property major Dexus is extending its regional reach with the opening of a new office in Singapore and the … Read More>>

CBRE IM Appoints Vida Tandean as Head of Indirect Private Real Estate Strategies in Asia

Vida Tandean

CBRE Investment Management has bolstered its regional roster with the hiring of Vida Tandean as head of Asia investments … Read More>>

Asia Real Estate People in the News 2023-01-30

Henry Bott Swire

One of Hong Kong’s best known conglomerates leads this week’s set of personnel updates on Mingtiandi as Hong Kong’s John … Read More>>

Asia Real Estate People in the News 2023-01-23

Liu Weiliang Zhenro

An ailing mainland developer leads this week’s set of personnel moves from around Asia, as a new chairman takes over at … Read More>>

More Industry Professionals>>

Latest Stories

Laurent Jacquemin AXA
AXA IM ALTS Picks Up 33 Japanese Apartment Buildings for $459M
Tim Blackburn Swire
Swire Properties Buys 40% Stake in Bangkok Residential Site From HKRI for $73M
Guoco Midtown Office Project Opens Doors to Tenants in Singapore 

Sponsored Features

How Data Leadership Can Prepare Real Estate Companies for Big Data and AI in 2023
OpenSpace Capture
OpenSpace Capture Provides On-the-Ground Eyes at US Government Building Projects
Malls and Megaprojects from Hong Kong to Beijing Triumph at PropertyGuru Awards Show

More Sponsored Features>>

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


© 2007-2023 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.