GIC in S$904m partnership to set up rental apartment platform in China
SINGAPORE: Singapore’s sovereign wealth fund GIC is partnering NOVA, a Shanghai-based property operator and investment manager, to set up a 4.3 billion yuan (S$904 million) rental apartment platform in China.
The platform will invest in “quality rental apartment projects in core locations” across China’s Tier 1 cities, according to a joint press release on Monday (May 14).
GIC will also be acquiring a minority stake in NOVA, a company co-founded by global private equity firm Warburg Pincus.
Mr Lee Kok Sun, chief investment officer of GIC Real Estate, said GIC is “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”.
“There is a large and growing population of renters within our target income group, with a limited supply of quality institutionally-owned and professionally-managed projects,” he added, while noting that GIC’s partnership with NOVA is an “important component” of its broader strategy to invest in this emerging sector in China.
NOVA’s co-founder Wang Qian, who is also the company’s chairman and co-chief executive officer, said: “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.”
The transaction is expected to be completed in the third quarter of 2018, subject to regulatory approvals by the relevant authorities.