HONG KONG, Sept 4 (Reuters) - Private equity firm Warburg Pincus LLC on Monday said it will invest $183 million in Nova Property Investment Co. Ltd as the Chinese real estate developer and asset manager it co-founded looks to expand ‘aggressively’ in the country’s largest cities.
Nova’s management team is also investing an undisclosed amount into the company as part of the deal, the firms said in a joint statement. The funds come on top of the $170 million Warburg Pincus poured to found Nova in 2015 with Chinese entrepreneur Qian Wang.
Nova plans to use the funds to buy “aged and distressed properties” and convert them into modern apartments and shared-office space for rent. It already has about $735 million in assets under management, including 32 projects already in operation and or under development in Shanghai.
New home prices in China jumped 9.7 percent in July from a year ago, even as the government imposed restrictions to keep prices in check. Soaring prices and tighter lending make owning a home difficult for the country’s young and urban population, making rental a more affordable option. (Reporting by Elzio Barreto; Editing by Vyas Mohan)