Warburg Pincus leads $180mn investment in data centre developer D&J China
Tue 19 Sep 2017
Warburg Pincus, a global private equity firm based in New York, is the leader in a $180 million USD Series D investment round for its affiliate company, D&J China. D&J China is responsible for the design and operation of real estate properties including data centers, business and industrial parks, and workshops.
The most recent round of fundraising will be applied to expand the D&J portfolio in tier 1 cities and other strategic markets in China. The company currently has over 2 million sq.m of space either in operation or under development in China, in locations including Beijing, Shanghai, Shenzhen and Nanjing.
Dongping Sun, Chairman and CEO of D&J China pointed out that Chinese demand for data centers and business parks is increasing year-over-year. ‘With the growing demand for modern business parks, R&D facilities and headquarter campuses in China, there are substantial growth opportunities for a dedicated industrial developer and operator like ourselves,’ he said.
D&J China was co-founded in 2014 by Warburg Pincus and CEO Dongping Sun, a co-founder of e-Shang. D&J China is headquartered in Shanghai, with core markets comprised of Shanghai and Beijing, along with select tier 1.5 cities in China. Tenants include large domestic IT companies as well as multinationals and Fortune 500 firms such as Johnson & Johnson, Shell, Broadcom, Asiainfo, ABL, Denso and Jointauto.
D&J China has been very focused on fundraising, gaining $220 million USD in a Series B funding round in February 2016. That round of funding was also led by primary investors Warburg Pincus. The private equity firm began investing in China in 1994, and to date has spent more than an estimated $6.5 billion in various industries throughout the country. Most recently, the company invested $183 million USD in affiliate company Nova’s apartment rental platform.
In December of last year, D&J partnered with AVIC Trust to launch a $1.45 billion USD investment fund. The D&J Zhivan Equity Investment Fund represents the country’s first USD/RMB hybrid fund dedicated to investing in China’s industrial infrastructure. The fund was created to fund modern industrial parks in the major cities in China, as well as business and R&D parks, and production facilities.