Hong Kong and Singapore-focused private equity real estate firm Pamfleet Group has made its maiden investment in mainland China with the formation of an 82.1 million yuan ($12.23 million; €11 million) joint venture partnership with Deson Development International, a Hong Kong-listed property developer.
The two joint venture partners will work together to convert the Starway Parkview South Station Hotel, a 78,770 square foot hospitality asset in Shanghai built by Deson, into a co-living multifamily accommodation.
For Pamfleet, which owns a 70 percent interest in the JV, the deal also marks its first ever hospitality investment since it was founded in 2000. The firm has agreed to commit around $10 million equity in the JV via the Pamfleet Shanghai Real Estate Fund, Kelvin Wong, managing director at Pamfleet, told PERE.
The Pamfleet Shanghai Real Estate Fund is a $55 million separate account vehicle that was launched in June this year and has Partners Group as the sole investor. The Zug-based private markets investment manager has invested $50 million in the vehicle and the remaining $5 million commitment was made by Pamfleet.
With the Shanghai repositioning project Pamfleet Group, which until now has majorly invested in Hong Kong and Singapore via its two value-add real estate funds, is expanding its investment footprint in Asia. The firm recently opened its first office in mainland China in Shanghai.
Pamfleet operates two value-add funds in the region. In June last year it raised $400 million for the Pamfleet Real Estate (PREF) II from a total of 18 investors. Close to 70 percent of the capital was from repeat investors from PREF I, which closed on $209 million in 2012 and is currently in the process of liquidating the investments.