China’s state-backed real estate developer Poly Developments and Holdings has teamed up with peer Country Garden to launch a 5 billion yuan ($700 million) real estate fund, the former announced on WeChat.
The companies will set up the fund through their investment arms, Poly Capital and Country Garden Venture Capital, respectively.
The joint fund has been seeded with 1 billion yuan ($140 million) of capital. Cornerstone investors Poly Capital and Country Garden Venture Capital claim to have secured other prominent backers too.
The fund will primarily invest in areas such as manufacturing, services, construction materials, the artificial intelligence of things (AIoT), and integrated information systems. The investors will also help their portfolio companies in property development, building design and decoration, and realty management.
Poly Developments and Holdings offers real estate investment, estate development, brokerage, and real estate finance services. It got listed on the Shanghai Stock Exchange in 2006. It reported annual earnings of 236 billion yuan ($33 billion) in 2019, up 21.29 per cent compared to 2018.
Poly Developments and Holdings is part of state-backed conglomerate Poly Group, which is engaged in businesses including international trade and real estate development. The business group has a presence in over 100 countries worldwide and over 100 cities in China.
Poly Group founded Poly Capital in 2015 to invest in startups aligned with its real estate business. Its portfolio includes smart home player Michoi, ceramic wall and floor tiles producer NewPearl Ceramics Group, fresh food e-commerce player MissFresh, and 3D modelling solutions provider Daspatial.
Hong Kong-listed Country Garden has developed over 700 residential, commercial and urban construction projects globally. Its VC arm, Country Garden Venture Capital, has backed companies such as real estate brokerage platform Beike Zhaofang and chemicals firm Xiamen Kuck Coatings Group.