Bain Capital ventures into China real estate

Bain Capital has partnered with CBL & Associates to invest in a Chinese mall operator and real estate developer.

Bain Capital has made its foray into the Chinese real estate market via an initial $60 million (€78 million) investment for a minority stake in the Jinsheng Group, a mall operator and real estate developer based in Nanjing.

Bain has made the investment in conjunction with CBL & Associates, a US mall developer that has its headquarters in Tennessee. Bain’s share of the investment is $45 million, and CBL has the remainder, according to a statement. Both investors also have an option to invest an additional combined $7.5 million in the company over the next three year.

Jinsheng Group owns and operates two home decor shopping malls and two shopping centers in Nanjing, as well as two home decor shopping malls in Shanghai. The Nanjing-based company also has several development projects underway.

Private equity investment in China’s real estate continues to be brisk. Warbug Pincus recently agreed to buy a 25 percent stake in Shanghai ZK Real Estate Development, which is developing nearly 600,000 square meters of floor space in the second-tier cities of Anhui, Jiangsu and Jiangxi provinces, located in eastern China. As part of the deal, Warburg Pincus agreed to provide at least $30 million for housing projects by ZK Real Estate, according to Shanghai Daily, a local newspaper.