Fundraising, Private Equity

Warburg-Backed D&J China To Launch $1.45B Industrial Park Fund

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A business park shown on D&J China's website

D&J Industrial Property (China) Investment Ltd., a business park and suburban office developer and operator majority-owned by Warburg Pincus, has launched an investment fund with AVIC Trust to invest in industrial infrastructure in China.

The D&J Zhiyan Equity Investment Fund, China’s first U.S. dollar and RMB hybrid fund dedicated to investing in industrial infrastructure, has an initial equity capitalization of RMB10 billion (US$1.45 billion) and will mainly invest in modern integrated industrial parks in China’s major cities.

The fund will seek to back projects including business parks, research and development parks, as well as production facilities.

AVIC Trust is an investment and trust manager in China
co-founded by the Aviation Industry Corporation of China (AVIC) and OCBC Bank of Singapore, with assets under management of over RMB430 billion (S$62 billion).

D&J China was co-founded by Warburg Pincus and Chinese real estate entrepreneur Sun Dongping in 2014. Sun is also chairman and CEO of D&J China.

"Driven by a strong trend for industrial upgrade, continued urbanization and rise of the knowledge economy, the fund will invest in quality assets and provide modern infrastructure services for corporates and manufacturers across the entire industry value chain," said Sun Dongping, co-founder and chairman of D&J China, in a statement.

Since its inception, D&J China has completed two rounds of financing and currently has over 1.2 million square meters of properties in operation and under development in Beijing, Shanghai, Nanjing and other cities in China.

D&J China’s tenants include Shell, Abbott and FMC, as well as high tech knowledge economy companies, such as Asiainfo and iSoftStone.

D&J China targets to grow its assets to over 5 million square meters in the next three to five years with total asset value to reach RMB45 billion by 2020.

"In addition to helping tenants lower potential cost of land sourcing, infrastructure and facilities construction, the fund also seeks to provide integrated services in the areas of finance, data storage, consultancy and R&D," said Yao Jiangtao, chairman of AVIC Trust.

In April, D&J China agreed to acquire a 40% stake in Chinese real estate investment management firm KaiLong Group for an undisclosed amount.

In February, Warburg Pincus and Sun Dongping said they would invest US$220 million in D&J China’s series B funding round, following the pair’s initial investment of US$200 million in 2014 at the company’s establishment.

D&J China is the second real estate platform co-founded by Warburg Pincus and Sun, after the pair co-founded warehouse developer e-Shang in 2011.

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