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Guangzhou R&F Properties Stage: LBOs and Special Situations Date of Investment: 2005 Web Site : http://www.rfchina.com Stock Symbol : HKSE: 2777 |
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Headquartered in Guangzhou in southern China, Guangzhou R&F operates primarily in Guangzhou and Beijing, two of the three largest cities in China. With 8,000 apartment units sold in 2004, R&F is the fifth largest residential developer in China, focusing on providing fully-furnished, affordable residences. Warburg Pincus acted as the lead investor in R&F’s IPO listing on the Hong Kong Stock Exchange, investing $65.3 million, which represented 6.1% of the fully-diluted equity of the company. The overall IPO size was $295 million post-greenshoe, representing a float of 25% of the company and implying a total equity market capitalization of around $1 billion. We made our investment in R&F with the belief that the company could capitalize on the increasing expansion of the Chinese middle class, fast urbanization trends, strong GDP growth and pent-up demand for modern housing.
