Jan. 31, 2007 (China Knowledge) – U.S. private equity firm Warburg Pincus has agreed to buy a 25% stake in Shanghai ZK Real Estate Development Co. Ltd. for an undisclosed amount.

Under the deal, signed on Monday, Warburg Pincus will provide at least US$30 million for housing projects invested and managed by ZK Real Estate. In return, ZK Real Estate would issue new shares to Warburg Pincus.

Although set up barely a year ago, ZK Real Estate is developing nearly 600,000 sq m of floor space in the second-tier cities in east China's Anhui, Jiangsu and Jiangxi provinces, targeting higher-end consumers.