US firm buys stake in ZK Real Estate

SHANGHAI: Warburg Pincus, a leading private equity investor, bought a 25 percent stake in Shanghai ZK Real Estate Development Co yesterday for an undisclosed amount.

According to the deal, Warburg Pincus, which has invested more than $500 million in 20 Chinese firms in a number of sectors, agreed to provide at least $30 million for housing projects invested and managed by ZK Real Estate.

The purchase allows the US firm to tap the property market in China's small and medium-sized cities, supplementing its strong investment in the first-tier cities.