Gaw Capital, a private equity company based out of Hong Kong, along with China SCE Group Holdings, a property developer, will develop a long-term rental apartment investment platform for their country. China SCE stated that the initial funding for the project is $800 million.
The joint venture aims to acquire, develop and operate multi-family residential projects in China’s core cities, according to the announcement, with China SCE’s Funlive Holdings unit responsible for acquisitions and disposals under the fund, as well as managing the platform’s assets.
The deal is the second major investment by Gaw in a mainland rental housing operator, and allows Funlive to expand its operations in the country.
The partners have seeded the venture with an initial 20,000 square metre apartment building in Shanghai, which is planned to yield 500 apartments when it is finished in 2020. China SCE says the new venture is aiming to have RMB 10 billion ($1.45 billion) in assets under management by 2021, and will continue to scour China for more investment opportunities.
Huang Chaoyang, CEO of Shanghai-based China SCE Group, said the company was “optimistic about the long-rental apartment industry and regard it as the most important property category for investment.
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