KKR, the New York-based private equity firm, and Chinese property developer Sino-Ocean Group have entered into an agreement to invest $191 million in Hong Kong-listed retail outlets developer and operator Beijing Capital Juda.
Following completion of the transaction, Sino-Ocean will own an approximate 16 percent stake in Capital Juda, a subsidiary of Beijing Capital Land – a leading Chinese real estate developer – and KKR will own an approximate 12 percent stake.
KKR has made the investment from its $1 billion China Growth Fund which held a final close back in 2011.
“Capital Juda is a leading real estate developer in China’s outlets space with a strong management team. We are excited about this opportunity and believe the sector will continue to benefit from a rising middle class, growing consumption and urbanization in China,” commented Rob Yang, managing director at KKR Asia.
The investment marks the second collaboration between Sino-Ocean and KKR, which first established a Chinese real estate joint venture in 2011.
The transaction is subject to customary regulatory and Capital Juda shareholder approvals.
HSBC is the sole financial adviser to Capital Juda.