Century Bridge makes debut Fund II investment – Exclusive

The China-focused private equity real estate firm is partnering with a local developer on an 840-unit residential project in China.

Century Bridge Capital has made its first investment from its second fund, PERE has learned.

The Beijing and Dallas, Texas-based private equity real estate firm invested $11.5 million in a $122 million residential project in Ningbo, China. Capital came from the firm’s second development-focused fund, Century Bridge China Real Estate Fund II. The firm held a first close for the vehicle in September on $59.7 million, according to a filing with the US Securities and Exchange Commission. It is unclear how much Century Bridge has raised to date for the vehicle, which has a $400 million target – more than double the size of its 2012 debut vehicle, Century Bridge China Real Estate Fund, which attracted $170 million from 10 investors.

For the latest fund’s first capital deployment, Century Bridge is again partnering with Jingrui Holdings on the 840-unit, 970,256 square foot development in Ningbo, an industrialized port city. The firms first worked together on a project announced in May 2014 to develop 1,368 high-rise units and 326 townhouse units in Wuxi.

In a statement, Century Bridge’s chief executive Tom Delatour highlighted the area’s low construction costs, high housing demand and growing disposable incomes.

“We are seeing additional equally attractive opportunities as a result of many investors turning their backs on the market at a time when prices are starting to stabilize and the supply-demand relationship is becoming more favorable for new developments,” Delatour said. “In addition to the favorable dynamic between affordability and home prices, it is in an in-fill site located in a mature submarket with significant growing, unfulfilled demand for middle-class housing.”

Century Bridge focuses on middle-income, residential real estate in Chinese Tier 2 and Tier 3 cities.