China-focused alternative investment firm Prax Capital will invest $30 million for a 25 percent interest in a joint venture with Xi’an-based developer China Housing & Land Development.
The joint venture will develop 79 acres within China Housing’s mixed-used project Baqiao, following regulatory approvals.
The deal will be the third investment from Prax Capital China Real Estate Fund I. The fund partners with residential developers , usually in second tier cities. It typically invests between $25 million to $30 million per project.
China Housing’s Baqiao project will include residential, retail, office, hotel, restaurant and community facilities, totalling approximately 20 million square feet. The site is on the Ba River and next to a planned subway line connected to downtown Xi’an, the Xi’an international airport and the Terracotta Army tourist attraction.
China Housing has the exclusive rights to develop the 487 acre project site. It will fund the construction with cash from pre-sales and a RMB 1 billion ($147 million; €115 million) real estate credit line secured from China Construction Bank.
Listed on NASDAQ, China Housing is engaged in land acquisition, development and management activities, including the sales of residential and commercial properties, since 1992.
Established in 2003, Prax Capital is based in Shanghai and currently manages the Prax Capital China Real Estate Fund I and two growth capital funds. It has approximately $300 million in assets under management.
Prax Capital declined to comment further.