Chinese venture capital firm Shenzhen Capital Group Co. and retail firm Suning Commerce Group Co. have agreed to jointly establish a logistics real estate fund.
The fund will hold a $750 million first close and plans to have a target size of $4.5 billion. The new fund will be managed by Suning Shenzhen Capital Group Fund Management Company, in which Suning and Shenzhen Capital Group holds a 51 percent and 40 percent stake, respectively. Suning will account for 51 percent of the initial first-phase funding, while Shenzhen Capital Group will contribute the rest.
The fund will invest in Suning’s own warehousing logistics facilities and modern distribution centers, as well as acquire resources from other mature companies. It will have three years to make investments, followed by two years for exits via real estate investment trust, initial public offering, equity transfer or asset securitization.
