Hong Kong-listed realty developer Sino-Ocean Group has announced the launch of a $1.4-billion China office fund, garnering capital commitments from three limited partners.
The new fund, dubbed Sino-Ocean Prime Office Partners I, claims to be China’s largest office fund to date, per the company’s Tuesday filing.
Sino-Ocean Group, through its investment vehicle Sino-Ocean Capital, will make a seed contribution of $400 million to the office fund. The rest of the capital commitments will come from three undisclosed limited partners, said to be sovereign wealth funds or institutional investors.
Mingtiandi reported that Singapore’s state investor GIC is among the LPs to have invested in the fund.
Sino-Ocean Capital will be the general partner (GP) and fund manager while M3 Capital Partners (HK) Limited will act as an exclusive financial advisor.
The fund seeks to invest in China’s Grade A office projects, including Sino-Ocean’s two projects in Beijing – the Ocean Office Park complex and Project Z6 (under construction).
Set up in 1993 and listed in Hong Kong in 2007, Sino-Ocean Group is engaged in residential property development, real estate investments and operations, property services, financing, and logistics.
The group has developed and operated over 600 projects across the country such as Sino-Ocean Taikoo Li (Chengdu), INDIGO (Beijing), Ocean Plaza (Beijing) and China Life Financial Center (Beijing).
As an alternative asset management firm of Sino-Ocean Group, Sino-Ocean Capital manages over 130 billion yuan ($20 billion) in assets. It has debuted a 5 billion yuan ($777 million) urban renovation fund. Earlier in May this year, it made a successful exit from Beijing Diamond Tower with annualized rate of return of 20%.
The office fund will help Sino-Ocean Group scale up its presence in China’s southern and western regions.