KKR, Sino-Ocean launch $140m real estate fund

KKR and Sino-Ocean both injected approximately $70 million into the vehicle, Sino Prosperity Real Estate Fund, which will invest in mid-to-high-end residential properties in emerging cities for a period of five years. The fund will help to finance Sino-Ocean's property developments and M&A endeavors. The company specifically develops residential properties, premium office premises, retail properties and serviced apartments along the coast and Yangtze River. It has 57 projects at different development stages.

"Combining Sino-Ocean's strong local expertise in real estate development and operations with KKR's extensive global resources and investment experience, the joint venture is well positioned to achieve strong performance," Ming Li, chairman and CEO of Sino-Ocean, said in a statement.

The joint venture comes as real estate developers are seeing an increasingly difficult credit environment in China sparked by government initiatives to rein in price growth. The news has promoted a rush of foreign capital into to sector. According to Deloitte, foreign investment in China's real estate sector increased 66% year-on-year in the first quarter of 2011 to RMB796 billion ($125 billion).

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• Topics
• Real estate
• Greater China
• KKR