CITIC Group’s investment vehicle CITIC Capital has joined hands with a unit of SF Holdings to launch a 2.1 billion yuan ($308 million) fund for logistics properties in China, CITIC announced on Monday.
CITIC Capital’s logistics arm CCRE China Logistics Limited (CCRE China) and SF Holdings subsidiary Prosperity Sino Limited entered into the agreement on September 26 to jointly set up CC SF China Logistics Properties Investment Fund, LP.
SF Holdings is the parent company of the Chinese courier giant SF Express.
CITIC Capital’s unit Infinite Benefits will pour 105 million yuan ($15 million) to the joint fund, while SF Holdings’ units Patriot Success and Abundant Harvest will together pour in 525 million yuan ($77 million). Singapore-based GIC Private’s unit Reco Aquamarine Private Limited will also invest 1.47 billion yuan ($216 million) as a limited partner, according to a filing with the Shenzhen Stock Exchange.
Upon the completion of the transaction, the fund will be invested in logistics properties and industries in China’s top-tier cities and others, CITIC said.
CITIC Capital, established by China’s state-owned CITIC Group in 2002, is a Hong Kong-headquartered Chinese global alternative investment management company. With over 300 professionals in branch offices across Shanghai, Beijing, Shenzhen, Tokyo, and New York, the company operates businesses in the fields of private equity, real estate, structured investment and finance, and asset management. It manages $30 billion in assets.
The firm has forged long-term partnerships with SF Holdings since 2013. In August that year, CITIC along with state-backed China Merchants Capital, Oriza Holdings and Jade Capital had together made a 10 billion yuan ($1.5 billion) strategic investment in SF Holdings.
Subsequently, CITIC facilitated the cold chain logistics business joint venture set up by SF Holdings and McDonald China’s supply chain supplier HAVI Group in 2018.
CITIC and SF Holdings had initially planned to launch the logistics fund in February this year, aiming to raise $400 million.
“The fund will drive SF’s business forward, and facilitate the circle between industry operations and capital flows,” CITIC said in the statement.
Headquartered in Southeast China’s Guangdong province, SF Holdings provides integrated and intelligent logistics solutions such as warehousing, sales forecasting, and settlement management for enterprises and consumers. The company was listed in Shenzhen in 2010.