Real estate fund manager Stockbridge Capital Group has repurchased the 48% interest it sold to Hong Kong-based CITIC Capital Holdings in 2017.

Executive managing director Terry Fancher told IPE Real Assets: “While Stockbridge Capital Group and CITIC Capital continue to have an excellent relationship, we have mutually concluded that this ownership repurchase will best serve each firm’s strategic objectives.”

The terms of the transaction were not disclosed, but the repurchase of the stake is being partly funded by “passive, special-purchase financing” from Landmark Partners, a private-equity secondaries specialist acquired by Ares earlier this year.

CITIC Capital is expected to maintain its relationship with Stockbridge Capital as an investor and the transaction is said to have no impact on the governance or investments of Stockbridge’s affiliated investment adviser Core and Value Advisors.

According to a board meeting report by the Los Angeles Fire and Police Pension, the sale of the 48% stake in 2017 was expected to be mutually beneficial, with Stockbridge gaining access to Hong Kong and Chinese capital markets and CITIC Capital being able to offer US real estate products to clients.

However, shortly after the sale was completed, the Chinese government implemented restrictions that slowed the flow of Chinese capital into foreign real estate markets.