China-based property developer Centraland has secured S$127.7 million or 650 million yuan worth of investment from Warburg Pincus, a US private equity firm.
Warburg Pincus is set to acquire a 31.71 percent stake in each of two property projects by Centraland under a signed agreement. The projects include a wholesale mall project for small consumer goods and a fashion apparel wholesale trading centre. Both developments are located in Henan province in central China.
Centraland, which helps to manage the mall has proposed to purchase it. The mall has an annual turnover of one billion yuan.
Centraland noted that the partnership will place the company in Warburg Pincus’ existing wholesale assets portfolio in China.
Miao Chi, managing director of Warburg Pincus (Beijing), said the company was committed to China’s wholesale and retail sectors, given the country’s rapid accumulation of wealth and strong domestic consumption growth.