Partners Group acquires 12% of Venator's China RE fund

The transaction - which will see Partners Group hold the second largest LP interest in the vehicle - was the result of a 31 LPs selling down their interests via a secondary auction process that began last December. TPD, which was initially been launched in 2007 as a seven-year fund, was managed by Winnington Capital until Venator took over as part of a restructuring last year.

The fund holds a minority interest in five development projects in China through a partnership with Hong Kong-listed real estate developer Shui On Land.

In October, TPD entered into an asset swap agreement with Shui On Land. As part of the deal TPD will take a majority stake in a 968,000-square-foot residential project in the upmarket Xintiandi district of Shanghai named Taipingqiao 116. In return, Shui On Land will receive the fund's minority investments in four developments in Shanghai, Wuhan and Chongqing. The asset swap is set to close in the third quarter of 2014,

Over the course of the restructuring, the TPD's advisory board approved a two-year extension to the life of the fund. A tender offer process was then launched to secure a short term liquidity window for investor seeking an exit.

"Partners Group had been monitoring the assets within the overall Trophy portfolio for several years, even before the involvement of Venator," said Marc Weiss, partner and head real estate secondaries with Partners Group, in a statement."With the program successfully restructured by Venator and a strong management team now in place, Partners Group is pleased to have been able to structure a secondary offer that benefits all parties involved."

Partners Group is one of the most active acquirers of real estate portfolios through secondary transactions. Since the global financial crisis, it has invested over USD 2.7 billion globally in this area.

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• Topics
• Secondaries
• LPs
• Funds
• Secondaries
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• Fundraising