DNE Group, a Shanghai-based company formed through a merger in 2021, is partnering with Bain Capital in a $250 million joint venture to invest in manufacturing park assets in China. DNE specializes in smart manufacturing facilities for products like automobile parts and integrated circuits. They also develop and manage real estate in sectors such as logistics, cold chains, life sciences, and office buildings. In this joint venture, DNE will handle project management, while Bain Capital is the strategic investor. This collaboration comes as China seeks to upgrade its manufacturing sector by encouraging investment in advanced fields like chipmaking, data centres, and robotics.
Bain Capital and DNE Group, a Chinese industrial real estate developer and operator, recently announced that they have established a joint venture with a commitment of $250 million in equity. The U.S. firm is seeking investment opportunities in manufacturing park assets in China.
The Initial set of assets to be invested in by the joint venture is situated in the Yangtze River Delta area, which is a key industrial region in eastern China. The joint statement did not specify the individual funding contributions from each partner.
DNE Group will oversee the project management for the joint venture, while Bain Capital will serve as the strategic investor, as outlined in the statement.
China’s government has previously expressed a desire to modernize its extensive manufacturing sector and promote investment in advanced manufacturing segments like chip manufacturing, data centres, robotics, and life sciences. This move comes as part of its efforts to stabilize the economy after the pandemic and address growing geopolitical tensions.
DNE offers advanced manufacturing facilities catering to industries like automotive parts and integrated circuit equipment, as stated on its website.
Additionally, they are involved in the development and management of real estate properties in areas like logistics, cold storage, and life sciences, including the operation of office buildings.
DNE is headquartered in Shanghai and was established in 2021 through the merger of D&J China, backed by Warburg Pincus, and New Ease China. They have secured funding from strategic investors, including Sequoia Capital and the Swiss private equity firm Partners Group.
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