Winnington Capital has held a first close on its second development vehicle, raising $100 million in equity commitments – with a further $200 million expected in the next few months.
The Hong Kong-based private equity real estate firm said it expected to corral $300 million for its Trophy Property Development II fund by the end of the year. Winnington closed Fund I with more than $1 billion in 2008, according chief executive officer Eddie Wong.
Winnington has partnered with Hong Kong developer Shui On Land, investing in the company’s developments across China. Fund I invested in five projects in Shanghai, Wuhan and Chongqing. Winnington said it would continue to target commercial and residential developments in Tier I and Tier II cities through its second vehicle.
In October 2008, Winnington invested RMB2 billion (around €200 million; $272 million) for a 25 percent stake in Rightchina, a wholly-owned subsidiary of Score High, itself a subsidiary of Shui On Land Limited. The deal also saw Winnington take the equivalent of a 25 percent stake in Rightchina in the form of an irrevocable call option at an exercise price of $136 million.
Earlier that year, Winnington struck a similar deal with Foresight Profits, taking a 25 percent stake in the Shanghai property development firm worth $162 million and another 25 percent in the form an irrevocable call option at an exercise price of $162 million. Minter Ellison acted for Winnington on both transactions.
Winnington was founded in 1999 by Kenneth Hung and manages two Asia-focused equity funds, the Trophy Fund and Trophy LV Fund, in addition to its China real estate platform.