RRJ, Value Partners invest in Logan Property

The investors made their commitments as part of a share offering by Logan, involving the issue of 558 million new shares that represents a stake of 10% in the company after the issue. Existing investors Dragon Jubilee, Gao Run and Thrive Alley will sell portions of their stake to the new investors, then buy an equivalent portion of new shares, according to a release. Pricing has been set at HKD2.78 per share. RRJ holds about 5% of the Hong Kong-listed company. 

Logan's primary business is in real estate development, investment and construction in mainland China, focusing on the residential property market in Guangdong and Guangxi provinces. Proceeds from the issue will be applied toward the company's business development and for general working capital.

In its most recent annual report, Logan recorded revenue of RMB12.5 billion ($1.2 billion) for the year ended December 31, 2014 - up from RMB11.1 billion the previous year. Net profit over the same period increased from RMB 3.3 billion to RMB 3.7 billion.

RRJ, founded in 2011 by former Goldman Sachs and Hopu Investments executive Richard Ong, recently closed its third fund at $4.5 billion. The firm invests globally, with a particular focus on China and Southeast Asia, and is primarily interested in the financial services, natural resources, consumer, food, IT and outsourcing sectors.

Recent commitments by the GP include a $250 million investment this June in Chinese logistics firm Shanghai Yupei Group, for which RRJ led a consortium including leading institutional investors in North America and Singapore. RRJ, alongside the International Finance Corporation (IFC), also committed $85 million to Singapore-listed environmental protection and alternative energy business China Everbright Water in January.

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