Bain Capital Credit invests $300m in business park operator D&J China

Photo from D&J China's website.

Global credit specialist Bain Capital Credit is investing $300 million in D&J China, a Warburg Pincus-founded business park and suburban office space operator that seeks to further expand in top-tier cities in the country, according to a statement.

Shanghai-headquartered D&J China, co-founded by Warburg Pincus in 2014, is one of the largest office and innovation park owners and operators in China’s top tier cities with a portfolio spanning across diversified real estate assets such as Grade-A offices, R&D centers, and light industrial workshops.

The fresh investment will be used to fuel D&J China’s next phase of growth and support its expansion in key Chinese cities, with the goal of building the company “into a best-in-class integrated and services provider in China”, according to the statement.

D&J China’s current portfolio primarily focuses on key markets in Beijing, Shanghai, and Shenzhen. Among the tenants in its office and innovation park portfolio include leading companies in biotechnology and internet sectors such as AMD, Broadcom, Illumina, Johnson & Johnson, Sartorius, and WeWork.

“This partnership is a remarkable endorsement of the quality and value of our property assets, our proven business model and outstanding asset management capabilities,” said D&J China CEO Dongping Sun.

D&J China is the second platform co-founded by Warburg Pincus and Dongping Sun in 2014. Their partnership first began in 2011 when they co-founded e-Shang, a developer and operator of warehousing and logistics property.

The company raised $180 million in its Series D funding round in September 2017, led by Warburg Pincus.

Bain Capital Credit, on the other hand, invests across the full spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, and special situations, direct lending, structured products, non-performing loans (NPLs) and equities. It manages $39.2 billion in assets.

“The transaction exemplifies our ability to structure flexible capital solutions to meet the financing needs of Chinese corporates as they seek to expand and grow their businesses,” according to Barnaby Lyons, managing director and head of Asia for Bain Capital Credit.