Property developer Tianjin Jinbin Development intends to inject 152 million yuan to set up Tianjin Jinbin Futong Investment, a wholly controlled subsidiary that will subscribe to 150 million limited partnership shares of Jinhe Development Equity Investment Fund Partnership, reports stcn.com, citing a company filing.
Jinhe Development Equity Investment Fund Partnership is the first joint venture real estate fund set up by Jinhe Equity Investment Management Company.
The fund plans to raise between 500 million yuan and 1.5 billion yuan while its partner, Futong, will contribute 150 million yuan.
Jinhe Equity Investment Management Company is a subsidiary of Jinbin Development.
According to Jinbin Development, bank financing accounts for more than 70 percent of the funds invested on real estate development in China while in developed countries, more than 80 percent of the funds come from real estate funds.
