Warburg Pincus and Wensheng form China-focused real estate platform

Warburg Pincus and Wensheng, a special-situations asset manager in China, have established Wensheng Special Situations Asset Management Co., which focuses on single credit real estate special-situations investments.

Warburg Pincus and Wensheng are committing up to $600 million to the platform, with a target to bring the total assets under management to $5 billion over the next five years and create a clear market leader. Through diversified asset-sourcing channels and creative deal structures, the platform is committed to unlocking the values of underutilized real estate assets in China.

The platform will pursue a number of key strategies, including nonperforming loan-to-own, rescue financing, and other special situations. The seed assets are located in Shanghai, Zhejiang and Hainan.

Zhijie Zhou, the founder of Wensheng, said, “The economic development and urban renewal demand in China have unleashed tremendous opportunities for our special situations strategi