Warburg Pincus-backed new economy infrastructure investor DNE Group has raised RMB6bn (€804m) for a newly launched fund to invest in key locations in China.
DNE said the unnamed fund had attracted support from a number of Chinese institutional investors.
It said the seed assets and pipeline assets of the fund are distributed across the Yangtze River Delta, the Beijing-Tianjin-Hebei region and other city clusters – serving and supporting the development of new economy enterprises in various sectors, including local retail, e-commerce, manufacturing, cold chain and logistics.
“With deepening urbanisation and the development of private consumption in China, we expect new economy infrastructure in China’s key economic hubs to remain in short supply and resilient,” said Sun Dongping, chairman and CEO of DNE.
Sun said the new entity was one of the largest renminbi funds set up by DNE after the DNE group was formed through a merger of D&J China and New Ease China.
The combined group DNE is a new economy infrastructure developer and operator with a portfolio across multiple verticals, including logistics and cold chains, life science and modern manufacturing parks, urban redevelopment, and data centres.
“Its successful fundraising illustrates Chinese institutional investors’ recognition of DNE’s investment and management capabilities as well as our investment performance,” said Sun.
Last September, DNE received permission to establish the RMB1.38bn D&J New Economy Industrial Reit, China’s first REIT, sponsored by a private company.
DNE also formed a billion-dollar joint venture with an unnamed global investor to invest in life science parks in China’s top-tier cities. Its first asset was a life science park in Shanghai.
To read the latest edition of IPE Real Assets magazine click here.