RRJ invests $50m in China property developer CIFI

According to a regulatory filing, RRJ will buy 257 million shares at HK$1.52 apiece, a 4.1% premium to the October 16 closing price. This will give the private equity firm a 4.3% stake in CIFI.

"This transaction follows an earlier $100 million bond investment in CIFI by RRJ. We are confident CIFI's experienced management team will continue to deliver solid results and provide long term value to shareholders," said Charles Ong, co-chairman and co-CEO of RRJ.

In September, RRJ subscribed to $100 million of a $225 million senior notes issue made by CIFI. The remainder of the issue was placed with Citigroup, Standard Chartered, Deutsche Bank, HSBC and Haitong International.

CIFI ranks as one of China's 50 largest real estate developers by sales revenue. It primarily focuses on developing small to mid-size residential properties and commercial properties for sale. As of June, it had a land bank of approximately 7.65 million square meters in the Yangtze River Delta, the Pan Bohai Rim and central western China

CIFI recorded sales of RMB7.2 billion ($1.2 billion) for the first six months of 2013. It generated a net profit of RMB577 million, up 385% year-on-year, while revenue jumped 141% to RMB4.8 billion.

RRJ was founded in 2011 by Richard Ong, previously co-founder of Hopu Investment and brother to Charles, formerly of Temasek Holdings. The firm manages two funds with an aggregate size of $5.9 billion, investing in China and Southeast Asia. Its second vehicle reached a final close of $3.5 billion earlier this year.

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• Topics
• Real estate
• Real estate
• PIPEs
• Greater China
• China
• Real estate
• PIPE
• RRJ Capital