Sept. 6 (Bloomberg) -- KKR & Co., the private-equity firm managed by Henry Kravis and George Roberts, and Sino-Ocean Land Holdings Ltd. (3377) agreed to form a real estate joint venture in China with a commitment of $70 million each.
The new company will make a net investment of $64.3 million in a property project, Chaoyang, China-based developer Sino- Ocean is building in Dalian in the country’s northeast, according to a Hong Kong stock exchange filing yesterday.
This is KKR’s first announced real estate investment in China after its managers said on a conference call last month they are increasing the size of the New York-based firms real- estate and China teams. China will expand its efforts to curb price gains in smaller cities after limiting home purchases in Beijing and Shanghai, according to a July 14 summary of a State Council meeting.
KKR, through KKR China Growth Fund LP, and Sino-Ocean will invest an additional $1 million each through the new fund’s general partner, according to a separate statement to Hong Kong’s stock exchange yesterday.
In China, KKR owns stakes in companies ranging from financial leasing, to farming and the cement industry.
To contact the editor responsible for this story: Philip Lagerkranser at email@example.com