Singapore’s sovereign wealth fund GIC has partnered with Nova, a company co-founded by private equity firm Warburg Pincus, to establish a RMB4.3B (€567.3m) rental apartment platform in China.
As part of the alliance, GIC said it will also be acquiring a minority stake in Nova for an undisclosed sum.
Founded in Shanghai, Nova is an investment and asset management platform focused on value-add property acquisition, renovation and operation. At present, the company has a total of 39 projects under operation or renovation.
Wang Qian, Nova’s co-founder, chairman and Co-CEO, said: “GIC’s strategic partnership with Nova is a testament to our team’s vision and exceptional execution capabilities in building up
Nova’s leadership position in just three years, and an exciting milestone in our growth and expansion strategy.”
Lee Kok Sun, chief investment officer of GIC Real Estate, said: “As a long-term value investor, we are attracted by the promising outlook of China’s fast-growing rental apartment sector, with demand driven by changing demographic trends and cultural shifts towards city-living.
“Our partnership with NOVA is an important component of our broader strategy to invest in this emerging sector in China.”
Joseph Gagnon, a managing director and head of Asia Real Estate of Warburg Pincus, said: “Since co-founding Nova in 2015, we have been deeply impressed and pleased with Nova’s growth under the leadership of Qian Wang and Jerry Shen.
“The partnership with GIC will take Nova into a new stage of growth to further solidify its leadership position.”
The transaction, which is subject to regulatory approvals, is expected to be completed in the third quarter of the year.