A USD 4.7bn fund backed by Chinese and Japanese conglomerates is seeking developer partners to invest in large-scale projects in China.
The Xinjin IDC Fund, which was co-launched by CITIC Construction, Xinjin Holding and Itochu Corporation in January, is targeting a 15% internal investment return, General Manager Xue Liang said yesterday.
The vehicle, based in southeastern Ningbo city, will look to cooperate with various data centre operators on greenfield projects, with a focus on projects classified as Tier 3 and above. A single deal ticket size is about USD 100m.
“Our developer partners will be in charge of client services as well as daily operations and maintenance of data centres, while as a fund we will only act as the asset owner,” Xue said.
The ideal partner should have strong operation prowess and capability in securing clients, he added.
Xinjin, which is a cross-border alternative asset management offshoot of Chinese state conglomerate CITIC Group, acts as GP and manager of the fund. Itochu and CITIC Construction are founding LPs.
The fund comprises of a CNY 12bn (USD 1.7bn) Chinese yuan tranche and a USD 3bn US dollar-denominated tranche, with first close targets at CNY 2bn and USD 500m, respectively. The fundraising will have three phases.