Partners Group Acquires 12% Stake In Venator’s Trophy Fund

Zug, Switzerland-headquartered European private investment manager Partners Group has acquired a 12% stake from a US$1 billion China-focused private equity real estate fund managed by Venator Real Estate Capital Partners, representatives from both entities confirmed to China Money Network.

Thirty-one limited partners in the fund, named Trophy Property Development L.P., have sold their stakes to Partners Group for an undisclosed price in a rare private real estate secondary transaction that involves a China-focused vehicle.

The sale is the result of a secondary auction process that began last December. During the first half of 2013, approximately 40 limited partners (LPs) of the Trophy Property fund, representing US$200 million of original fund commitments, expressed interests to exit the fund.

At the same time, around 20 investors, comprising existing LPs and third party investors, registered their interest to acquire new or further commitments in the fund.

After several rounds of bidding, the Partners Group acquired approximately US$120 million of original commitments in the fund on behalf of its clients.

The transaction closed on June 30, and the Partners Group now owns the second largest stake in the fund.

The fund may arrange more LP stake sales during the remainder of the life of the fund if needed, says Venator.

Trophy Property Development L.P. is currently invested in five joint venture development projects across mainland China in partnership with Shui On Land, the Hong Kong-listed developer controlled by local businessman Vincent Lo.

Last October, Venator announced that the Trophy Property fund has entered into an asset swap agreement with Shui On Land.

In the asset exchange, the Trophy fund will own a majority stake in a 968,000-square-foot residential project in the fashionable Xintiandi district of Shanghai named Taipingqiao 116. Shui On Land will in return receive the fund’s minority investments in four developments in Shanghai, Wuhan and Chongqing.

This transaction is now expected to close in the third quarter of 2014.

China Expert network