Limetree Capital targets $325m for car parking fund
Hong Kong-based Limetree Capital is targeting $325 million for its China Car Park Investment Fund, which will address the country's lack of parking spaces.
The fund has alreadys secured $86 million from investors, according to a filing. Mercury Capital Advisors is acting as the placement agent.
The fund will invest in the construction and purchase of car parks and garages across China, Dow Jowes reported. Limetree notes on its website that China has five times fewer parking bays per car than the West, while more than 1.1 million cars are being sold each month.
According to the China Association of Automobile Manufacturers, auto sales came to more than 19.3 million units in 2012, up 4.33% year-on-year. Passenger car sales increased 7.1% to 15.5 million units.
"Current government policy is now directed to solving each cities parking problems. We believe parking rates will rise significantly over the next few years and this is an industry with the opportunity for new innovation and to build a unique service orientated parking brand in China," Limetree added.
Earlier this year, China Resources Capital (CR Capital), the financial services arm of state-owned China Resources Group, and Dutch pension fund asset manager APG established a $265 million car park fund.
CR Capital and APG will each commit $120 million to the vehicle, known as the Resources Urban Car Park Investment Partnership. Other investors include Macquarie Capital and Wilson Parking Hong Kong, a leading car park manager and operator in Asia Pacific.
Founded in 2006, Limetree Capital currently manages two PE funds - Asian Emerging Beachfront Land Fund and Car Park Investment Fund - with $568 million in commitments from institutions, endowments and family offices.
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