Hopu buys $45m stake in Indonesian RE developer

The Beijing-based private equity fund launched by former Goldman Sachs executives has reportedly made its first investment outside of China.

Hopu Investment Management has purchased a 4.9 percent stake in Lippo Karawaci, the Indonesian-listed real estate and hospital developer, according to a report by the Financial Times.

Hopu reportedly bought the stake from state-owned conglomerate China Resources, which also owns a majority position in Hong Kong-based real estate investment management firm, Harvest Capital Partners.

Lippo Karawaci, the largest real estate developer in Indonesia, has developed five hospitals in the country, among other schemes.

Hopu, which was founded by former Goldman Sachs China mainland securities head, Fang Fenglei, invests through a $2.5 billion private equity fund which has also invested in iron ore production companies and dairies since its inception. One of its recent acquisitions was China Megniu Dairy, a company in the midst of restructuring following a toxic milk scandal last year.

The deal with China Resources marks its first investment outside of China by Beijing-based private equity firm Hopu since its establishment last year.

According to one source interviewed by the FT said: “This might be a relatively small deal but it demonstrates that Hopu is not just interested in Chinese companies. Hopu is planning to branch out into fast-growing regional economies like Vietnam and Malaysia, too.”