Warburg Pincus-backed D&J China raises debut fund

The fund, with an initial equity capitalization of $1.45bn, will be invested in industrial parks in China.

D&J Industrial Property (China) Investment Limited, a Shanghai-headquartered firm co-founded by Warburg Pincus, has set up an RMB 10 billion ($1.45 billion; €1.37 billion) industrial real estate fund.

The equity raised via D&J Zhiyan Equity Investment Fund will be mainly invested in modern integrated industrial parks in first-tier and some other select cities in China.

Apart from D&J China, which owns a significant stake in the vehicle, the remaining equity has been invested by AVIC Trust. Co-founded by the state-owned Aviation Industry Corporation of China (AVIC) and the OCBC Bank of Singapore, AVIC Trust is a joint stock non-banking financing institution that has more than RMB 430 billion in assets under management.

This is D&J China’s debut real estate fund in the market. Until now, the integrated business parks and suburban office operator was investing its own balance sheet capital in projects.

“We are excited to partner with AVIC Trust to launch the D&J Zhiyan fund. Driven by a strong trend for industrial upgrade, continued urbanization and rise of the knowledge economy, the fund will invest in quality assets and provide modern infrastructure services for corporates and manufacturers across the entire industry value chain. The fund will also leverage capital and industrial resources from AVIC Trust and Warburg Pincus and create significant synergies,” explained Sun Dongping, co-founder and chairman of D&J China.

Yao Jiangtao, chairman of AVIC Trust, added: “The new fund brings together professional capital market capabilities and industrial park operations and development expertise. In addition to helping tenants lower potential cost of land sourcing, infrastructure and facilities construction, the fund also seeks to provide integrated services in the areas of finance, data storage, consultancy and R&D.”

D&J China was co-founded by the global private equity firm Warburg Pincus and a Chinese entrepreneur Sun Dongping in 2014. The firm currently has over 1.2 million square meters of properties in operation and under development in Beijing, Shanghai and other Chinese cities.