SINGAPORE - GIC, Singapore's sovereign wealth fund, is partnering Nova, a Shanghai-based property investment and asset management platform, to set up a 4.3 billion yuan (S$904.9 million) rental apartment platform in China.

Both partners said in a joint statement on Monday (May 14) that the platform will invest in "quality rental apartment projects" in core locations across China's Tier 1 cities.

To boot, GIC will be acquiring a minority stake in Nova, a company that is co-founded by Wang Qian and global private equity firm Warburg Pincus.

Mr Wang, who is also chairman and chief executive of Nova, said: "Our vision is to become a leading investment and asset management platform in the urban renewal and rental apartment sector, to deliver the best-in-class investment, renovation and operation services."

Lee Kok Sun, chief investment officer of GIC Real Estate, added: "As a long-term value investor, we are attracted by the promising outlook of China's fast-growing rental apartment sector, with demand driven by changing demographic trends and cultural shifts towards city-living.

"There is a large and growing population of renters within our target income group, with a limited supply of quality institutionally-owned and professionally-managed projects."

The transaction is expected to be completed in the third quarter of 2018, subject to regulatory approvals by the relevant authorities.