Investment to Fuel Development of Integrated Outlets and Commercial
HONG KONG--(BUSINESS WIRE)--
Leading Chinese property developer Sino-Ocean Group Holding Limited
("Sino-Ocean"; HKEx: 3377) and global investment firm KKR have entered
into a definitive agreement to invest in China leading retail outlets
developer and operator Beijing Capital Juda Limited ("Capital Juda" or
"The Company"; HKEx: 1329) through a combination of new ordinary shares
and perpetual convertible bond securities for a total consideration of
HKD1,477 million (US$191 million).
Following completion of the transaction, Sino-Ocean will own an
approximate 16% stake in Capital Juda and KKR will own an approximate
12% stake in Capital Juda, in each case on a fully diluted basis.
Capital Juda is a Hong Kong-listed subsidiary of Beijing Capital Land
("BCL"), a leading Chinese real estate developer listed in Hong Kong and
controlled by Beijing Capital Group ("Capital Group"). The Company
leverages on BCL's experience and network in real estate development in
China as well as its own expertise in commercial development and
operations to focus on integrated outlets projects across China.
Sino-Ocean sees great potential for China's outlets sector given the
segment's defensive fundamentals through economic cycles. It views
Capital Juda and KKR as high-caliber partners with established track
records that will further develop and grow its property businesses in
Beichen Zhong, Executive Director and CEO of Capital Juda, said,
"Sino-Ocean and KKR are experienced investors in China's real estate
market and their investment in Capital Juda recognizes the future
potential of China's commercial real estate market, especially in the
outlets sector. Combining their resources and extensive industry
expertise with our experience in developing and managing outlets will
bring along synergies to accelerate the development of the Company's
Yang, Managing Director at KKR Asia, said, "Capital Juda is a
leading real estate developer in China's outlets space with a strong
management team. We are excited about this opportunity and believe the
sector will continue to benefit from a rising middle class, growing
consumption and urbanization in China."
The investment marks the second collaboration between Sino-Ocean and
KKR, which first established
a Chinese real estate joint venture in 2011.
KKR makes its investment from its China Growth Fund. The transaction is
subject to customary regulatory and Capital Juda shareholder approvals.
The Hongkong and Shanghai Banking Corporation Limited is the sole
financial adviser to Capital Juda.
About Beijing Capital Juda Limited (1329.HK)
BCL and its controlling shareholder Capital Group have completed the
acquisition of Beijing Capital Juda in December 2013. Since completion
of such acquisition, BCL became the controlling shareholder of Capital
Juda. Following the successful acquisition of Xi'an First City Project
in 2015, the proposed injection of outlets from BCL, and various ongoing
development projects, Capital Juda plans to leverage on BCL's experience
and network in real estate development in China and its own expertise in
commercial complex operation to focus on the development of integrated
outlets and commercial projects and its strategic deployment in 20
target cities. Capital Juda is committed to develop outlets projects in
20 cities within the next 5 years. For additional information about
Capital Juda, please visit Capital Juda's website at www.bcjuda.com.
About Sino-Ocean Group Holding Limited (3377.HK)
Founded in 1993, Sino-Ocean Group was listed on the Main Board of the
Hong Kong Stock Exchange on September 28, 2007 and has become one of the
top ten Mainland real estate companies listed in Hong Kong. In March
2008 Sino-Ocean Group was selected as a constituent of the Hang Seng
Hong Kong Composite Index and the Hang Seng China-Affiliated Corp Index.
The Company is mainly engaged in four business sectors which are
respectively the development of mid to high-end residential properties,
premium office buildings and retail properties, real estate financing
and customer services which consisting of property management and senior
living business. For additional information about Sino-Ocean, please
visit Sino-Ocean's website at www.sinooceangroup.com.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and
on Twitter @KKR_Co.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161127005071/en/
For Beijing Capital Juda:
Xia Wang, +86-10-85892857
Yiqian Ma, +86-10-59299818
KKR Asia Pacific
Anita Davis, +852-3602-7335
Cara Kleiman, +1-212-750-8300
Strategies (For KKR Hong Kong)
Beatrice Wong, +852-2894-6373
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