InfraRed Capital Partners and its joint venture partner Nan Fung Group, the Hong Kong-based conglomerate, have exited a Shanghai development project for $88 million.
The project, a 3-star domestically-branded hotel situated near Xintiandi, in Shanghai, China, was acquired by the pair through its joint venture vehicle, InfraRed NF China Real Estate Fund II, in July 2016 in an off-market transaction.
The original value-add business plan was to convert the property into an international 4-star select-service hotel, however, an early exit was achieved for the asset by repackaging the property as a mixed-use office and serviced apartment redevelopment project, the firms said in statement.
InfraRed is an international investment manager focused on infrastructure and real estate. It operates from offices in London, Hong Kong, New York, Seoul and Sydney. The firm currently manages in excess of $9 billion of equity capital in multiple private and listed funds.
Nan Fung Group is a Hong Kong-based conglomerate with interests in real estate development and investment. As one of Hong Kong’s most established developers, Nan Fung Group has developed over 170 real estate projects covering residential, commercial and industrial buildings.