Warburg Pincus backs property developer Jinmao’s HK IPO
Warburg Pincus has agreed to buy HK$77.5 million worth of shares in Chinese property developer Jinmao Investments’ Hong Kong IPO, which is targeting up to HK$3.39 billion ($437 million).
The private equity firm is one of four cornerstone investors that will between them contribute HK$310 million, according to a regulatory filing. Jinmao is selling 600 million share-stapled units at HK$5.35-5.65 apiece. Should the company price at the top end of the range, Warburg Pincus will own approximately 13.7 million units, or a 0.7% stake.
Jinmao is structured as a fixed single investment trust with a focus on the hospitality industry. Its flagship asset is Shanghai's 88-floor Jin Mao Tower, comprising the Grand Hyatt Shanghai as well as office, retail and tourist areas. The company also owns The Westin Beijing Chaoyang, the JW Marriott Hotel Shenzhen, The Ritz-Carlton Sanya, the Hilton Sanya Resort and Spa, and the Hyatt Regency Chongming.
Jinmao is majority-owned by Franshion Properties, a Hong Kong-listed developer controlled by state-owned Sinochem Corporation. Gross profit came to HK$1.53 billion for the 2013 financial year, down from HK$1.57 billion the previous year. Revenue for 2013 was HK$2.63 billion.
Earlier this year, Sunshine 100 China Holdings - a commercial and residential real estate developer that first received investment from Warburg Picnus in 2006 - raised about HK$2 billion through a Hong Kong IPO.
More on Real estate
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.