Warburg Pincus-backed DNE Group has raised around RMB3.5bn (€419m) for its latest fund to invest in industrial assets across China.
DNE, a new economy infrastructure investor, developer and operator in China, said the vehicle would primarily target two asset classes: modern logistics facilities in China’s key gateway cities, and high-quality manufacturing parks and industrial facilities located in mature industrial clusters.
“The portfolio will focus on capturing the robust infrastructure demand driven by e-commerce, intelligent manufacturing and supply chain upgrades, with the aim of delivering stable and sustainable returns for investors,” it said.
Dongping Sun, chairman and CEO of DNE Group, said: “The establishment of this new fund marks another important milestone for DNE. Despite the evolving global economic landscape, the fundamentals of China’s new economy infrastructure remain solid.
“Leveraging our deep local insights and comprehensive asset management capabilities, we will continue to capture market opportunities, optimise our portfolio, and deliver on our commitment to creating long-term value for our investors while supporting the transformation and upgrading of China’s economy.”
Together with this latest fundraise, DNE has raised a total of close to RMB5bn across its RMB funds so far this year.
The firm has also recently received regulatory approval for the expansion of its new economy public real estate investment trust, DNE New Economy C-REIT, and expects to complete the issuance by the end of the year.
Since listing, the market capitalisation of the vehicle, one of China’s industrial workshop C-REITs, has risen by almost 20% in the year to date
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