China’s Sino-Ocean Capital mulls $1.5b fund to invest in prime offices in Beijing: Report

Commercial buildings including the China Central Television (CCTV) Headquarters, center, stand in the central business district of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

Sino-Ocean Capital, the investment unit of mainland developer Sino-Ocean Group, is reportedly targeting to collect $1.5 billion for its latest real estate fund for investments in prime offices in Beijing.

The investment vehicle is expected to become the largest real estate fund so far raised by Sino-Ocean Capital. The company had expected to reach the final close of the fund by the end of 2019, but it is still in discussions with Dutch pension fund manager APG Asset Management, Hong Kong’s central banking authority Hong Kong Monetary Authority (HKMA), and Singapore’s sovereign wealth fund GIC on potential commitments, according to a PERE report citing five sources with knowledge of the matter.

Sino-Ocean Capital is looking to raise the entire $1.5 billion for the fund from the three potential investors, according to the report. The company can invest in assets developed by its parent company, Sino-Ocean Group, through the new vehicle, said two of the sources.

The four parties did not immediately respond to DealStreetAsia’s requests for comments as of press time.

Beijing-based Sino-Ocean Capital announced the first close of a modern logistics fund at 1.6 billion yuan ($231 million) in a WeChat post in July 2019. The previous fund made its first investment by leading a 300-million-yuan ($43 million) round in Beijing-based food supply chain brand Xinliangji.

Sino-Ocean Capital aimed to gather between 3 billion yuan ($433 million) and 5 billion yuan ($721 million) for the predecessor to start acquiring logistics properties in the second half of 2019, said Lin Chuan, managing director of Sino-Ocean Capital, cited in a South China Morning Post report.

Lin said that Sino-Ocean Capital had a target of injecting 48 billion yuan ($6.92 billion) into the logistics property field over the next five years.

Established in February 2013, Sino-Ocean Capital operates as an alternative asset management company involved in property investment, equity investment, and related advisory services, among others. The company had nearly 10 billion yuan ($1.44 billion) in total assets under management (AUM) as of January 2020.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.