KKR, Sino-Ocean invest in Beijing Capital Juda

The transaction, which is subject to regulatory and Capital Juda shareholder approval, will see KKR and Sino-Ocean pick up stakes of 12% and 16%, respectively, with Capital Juda issuing a combination of new ordinary shares and perpetual convertible bond securities. According to a filing, Capital Juda will use the new capital to support development of its integrated retail outlet projects across China.

Capital Juda is the Hong Kong-listed retail outlet arm of China-based integrated property developer Beijing Capital Land (BCL), which acquired Capital Juda in 2013. The company has committed to developing retail outlets in 20 cities over the next five years, and hopes to leverage the resources and experience of KKR and Sino-Ocean to accelerate the development of its property portfolio.

According to its most recent annual report, Capital Juda recorded revenue of RMB690 million ($100 million) for the year ended December 2015, with a profit of RMB337 million for the same period. Financial information for the previous year was not made available.

This is the most recent collaboration between KKR and Sino-Ocean: the two firms launched a $140 million real estate fund in 2011 aimed at investments in mid-to-high-end residential properties in emerging cities in China over a period of five years. However, the Capital Juda investment came from KKR's China Growth Fund, a $1 billion vehicle that closed in 2011.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Real estate
• Real estate
• Expansion
• China
• KKR
• Growth capital