<article>Singapore&#8217;s sovereign wealth fund <a href="https://www.dealstreetasia.com/?s=GIC">GIC</a> is setting up an RMB 4.3-billion ($675 million) rental apartment platform in China with Shanghai-headquartered <a href="https://www.dealstreetasia.com/?s=Nova">Nova</a>, a rental housing startup backed by <a href="https://www.dealstreetasia.com/?s=Warburg%20Pincus">Warburg Pincus</a>.</article>

Singapore&#8217;s sovereign wealth fund <a href="https://www.dealstreetasia.com/?s=GIC">GIC</a> is setting up an RMB 4.3-billion ($675 million) rental apartment platform in China with Shanghai-headquartered <a href="https://www.dealstreetasia.com/?s=Nova">Nova</a>, a rental housing startup backed by <a href="https://www.dealstreetasia.com/?s=Warburg%20Pincus">Warburg Pincus</a>.
In a statement, GIC said the platform will invest in quality rental apartment projects in China&#8217;s tier 1 cities.
As part of the joint venture, the Singapore fund will also be acquiring a minority stake in Nova. The transaction is expected to be completed in the third quarter of this year.
The deal will make GIC the third-largest investor in Nova and could bring the Singapore sovereign wealth fund’s investment in the rental housing startup and its projects to more than $1 billion, according to a <a href="https://www.mingtiandi.com/real-estate/finance-real-estate/gic-forms-china-multifamily-jv-with-warburg-pincus-nova-apartments/">Mingtiandi report</a>.
Founded in 2015, Nova focuses on the acquisition of properties for conversion into for-rent apartments and creative office spaces. It aims to become one of China&#8217;s best commercial property investors and asset managers, Warburg Pincus says on its website.
“As a long-term value investor, we are attracted by the promising outlook of China’s fast-growing rental apartment sector, with demand driven by changing demographic trends and cultural shifts towards city-living,” said Lee Kok Sun, chief investment officer of GIC Real Estate.
Lee said there is a large and growing population of renters within GIC’s target income group, with a limited supply of quality institutionally owned and professionally managed projects.
“Our partnership with Nova is an important component of our broader strategy to invest in this emerging sector in China,” he added.
The three-year-old Nova targets acquisition opportunities in Shanghai and other first-tier economic centres within the Beijing-Tianjin-Hebei region and Pearl River Delta area. The joint venture gives GIC access to Nova’s projects and further exposure into the Chinese market.
“Our vision is to become a leading investment and asset management platform in the urban renewal and rental apartment sector, to deliver the best-in-class investment, renovation and operation services,&#8221; said Nova co-founder, chairman, and co-CEO Wang Qian.
<h3>It&#8217;s pouring funds in China&#8217;s apartment rental market</h3>
China&#8217;s rental housing market continues to grow rapidly as the government shifts its focus to renting. High property prices have made it difficult for people to buy an apartment in first-tier cities such as Beijing, Shanghai and Shenzhen.
Early this year, apartment rental services firm Ziroom raised a $622-million Series A from Warburg Pincus, Tencent and Sequoia Capital China. In February, Danke Apartment raised $100 million from CMC Capital and Banyan Capital.
In April, long-term apartment rental startup QingKe raised more than $100 million in a Series C round led by a fund managed by Morgan Stanley PE Asia and Singapore-based Crescent Point.
More recently, apartment leasing firm Uoko raised $157 million from Shenzhen Venture Capital, Hong Kong-listed Greentown Service Group, Galaxy Holdings and existing investors Legend Capital, Matrix Partners China and SIG.
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<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/morgan-stanley-fund-co-leads-100m-series-c-in-chinese-apartment-rental-firm-qingke-96260/">Morgan Stanley PE Asia co-leads $100m Series C in Chinese apartment rental firm QingKe </a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-apartment-rental-uoko-97606/">China’s apartment rental firm Uoko raises $157m Series C1</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-cmc-banyan-danke-apartment-rental-93158/">China’s CMC, Banyan Capital back apartment rental site Danke’s $100m Series B</a>

GIC will also be acquiring a minority stake in rental housing startup Nova as part of the agreement.

GIC sets up $675m China rental apartment JV with Warburg-backed Nova

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GIC sets up $675m China rental apartment JV with Warburg-backed Nova

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