Warburg Pincus-backed D&J launches $1.5b China infrastructure fund

Target assets for the hybrid US dollar and renminbi vehicle - known as D&J Zhiyan Equity Investment Fund - include business parks, R&D parks and production facilities in top-tier cities across China.

D&J and develops and operates business parks and other corporate and modern industrial facilities. It currently has more than 1.2 million square meters of properties in operation, and is targeting 5 million sqm within five years. Total asset value is expected to reach RMB45 billion by 2020. Tenants include the likes of AsiaInfo, iSoftStone, Shell and Abbott.

The company completed a $220 million Series B round of funding provided by Warburg Pincus and Dongping Sun, D&J's founder, in February. It has raised a total of $420 million since inception in 2014. This is the second business co-founded by the private equity firm and Sun, following warehouse developer e-Shang. That company merged with Redwood Group earlier this year.

"Warburg Pincus has been a long-term investor into many leading high-growth companies underpinned by China's economic structural transformation, industry innovation and consumption upgrade. We see significant demand for dedicated R&D facilities, suburban office spaces and manufacturing bases from IT, internet and healthcare companies," Ellen Ng, a managing director with the PE firm, said in a statement.

AVIC Trust was established by Aviation Industry Corp. of China (AVIC) and OCBC Bank, and has more than RMB430 billion under management. The group has worked with Warburg Pincus before, leading a $300 million round for serviced apartment chain operator Mofang - which is backed by the PE firm - and joining it in a consortium seeking to privatize Singapore's ARA Asset Management.

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• Topics
• Greater China
• Infrastructure
• Real estate
• Infrastructure
• Fundraising
• Warburg Pincus Asia
• China