3i makes 1.9x return on the sale of Joyon Real Estate

16 Sep 2013

3i Group plc (“3i”) announces it has agreed to sell its 49.9% stake in Hunan Zhongkai Property Co., Ltd (a joint venture between 3i and Joyon Real Estate) to Zhejiang Joyon Real Estate Co., Ltd, a leading Chinese residential property developer.  The enterprise value of the transaction is approximately US$163 million (£105 million).  In sterling terms, the total proceeds to 3i represent a 1.9x money multiple on its original investment of US$50 million (£25 million).

Proceeds to 3i Group plc from today’s transaction will be c. £20 million, representing a 33% uplift against a value of £15 million at 31 March 2013.

Since 3i’s investment in May 2007, 3i has worked in partnership with Joyon, to develop a mid- to high-end residential development project in Changsha, Hunan Province. Having provided capital to secure the project, we used our international network to organise a number of meetings in Europe for senior management with leading building design and specialist property management companies, namely Foster + Partners, Peverel and Pegasus.

3i has also assisted Joyon with high level planning and the development of an action plan, to monitor development progress and introduce professional auditing and accounting standards.

 

For further information, contact:

3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com

 

Notes to editors:

All sterling amounts are stated as at current exchange rates except historical book values which are stated at the prevalent exchange rate at the time.

About 3i Group

3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.

About Joyon Real Estate

Zhejiang Joyon Real Estate Co., Ltd is a first grade certified property developer in China with real estate developments and property investments in residential and commercial properties, resorts and vacation homes as well as retirement housings.

 

Regulatory information

This transaction involved a recommendation of 3i Investments plc, advised by 3i China.