China's CRC sets up $265m car park fund(2)

China Resources Capital has teamed up with Dutch pension fund asset manager APG to establish a $265 million fund focused on investing in city car parks in China.

China Resources Capital Holdings, the financial services arm of state-owned enterprise China Resources Holdings, and Netherlands pension fund asset manager APG, have set up a $265 million fund dedicated to building car parks in China’s tier one and tier two city centers, according to a joint statement.

APG and CR Capital each committed $120 million. Other investors include Macquarie Capital and Wilson Parking Hong Kong, according to the statement. CR Capital will act as the GP of the fund.

The goal of the fund, named China Resources Urban Car Park Investment Partnership, is to “become the largest car park-focused investment vehicle in China”, the statement said. 

“This is a key milestone in growing our private equity real estate platform to partner with the leading institutional investors of the world such as APG,” CR Capital managing director Derek Cheng said in the statement.

APG’s Asia portfolio manager for non-listed real estate, Bradley Fu, added: “China has grown rapidly to now rank as the world’s largest auto market and we believe our partnership is well positioned to tap into this solid demand base for urban car parking,”

The respective investors could not be reached for additional comment by press time.

Real estate was the only private equity asset class that grew in both fundraising and deal volume and value in 2012, according to Zero2IPO figures.

China Resources Holdings has HK$760 billion (€74 billion; $98 billion) assets under management, according to the firm. CR Capital operates as a subsidiary of the conglomerate.

APG acts as an asset manager for 30 percent of all collective pension schemes in the Netherlands, and currently manages €325 billion in assets.