RRJ places bet on China real estate with $50 mln CIFI investment
HONG KONG Oct 16 (Reuters) - The private equity firm RRJ Capital is placing a bet on China's real estate market by investing $50 million in a new share issue by the Hong Kong-listed property developer CIFI Holdings Group Co Ltd , CIFI said on Wednesday.
Shanghai-headquartered CIFI is among China's top 50 real estate developers by revenue. It principally focuses on developing small to mid-sized properties in the residential sector, and developing commercial properties for sale.
RRJ already holds $100 million of CIFI bonds.
In its latest investment, RRJ, founded by ex-Hopu and Goldman Sachs dealmaker Richard Ong, will buy approximately 257 million new CIFI shares at HK$1.52 per share, a premium of around 4.1 percent to the Oct. 16 closing price.
The new shares will account for 4.3 percent of CIFI's enlarged issued share capital.
Proceeds from RRJ's investments will be used to buy new projects or land for development, and for general corporate purposes, CIFI said.
RRJ currently manages two funds with an aggregate size of $5.9 billion. (Reporting by Stephen Aldred; Editing by Kevin Liffey)
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