China Jinmao Holdings Group Ltd. and Sinochem Group are forming a private equity investment fund with a subscribed capital of 2.00 billion yuan and that will focus on projects controlled, operated by or branded under the Chinese developer.
Under the March 18 partnership agreement, China Jinmao's Jinmao Investment Management (Tianjin) Co. Ltd. subsidiary will contribute 1.00 billion yuan; Sinochem Group's Sincohem Capital Investment Management Co. Ltd. will supply 1.00 billion yuan; and Jinmao (Jiaxing) Investment Management Co. Ltd., a 50/50 investment management joint venture between China Jinmao and Macquarie Corporate Holdings Pty Ltd., will pitch in 1 million yuan.
The investment period for the fund, Sinochem Jinmao Future City Operation Management (Tianjin) Partnership (LP), is five years from the first closing date of the agreement, or when the capital contributions have been depleted, whichever comes first.
China state-owned Sinochem Group is the ultimate shareholder of China Jinmao with an approximately 49.82% stake.
As of March 18, US$1 was equivalent to 6.71 yuan.