http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/energy-efficiency/swiss-asia-launches-china-focused-energy-fund.html

Singapore-based fund manager Swiss-Asia Financial Services has launched a new infrastructure fund with a target size of €500m that will focus on investments in district energy assets in Greater China.

The China District Energy Fund has already made its first investment in a combined heat and power plant in Sichuan Province capital Chengdu, and received more than €84.2m in commitments.
A Luxembourg SICAR investment vehicle, its core strategy is to buy and expand brownfield district energy assets in China, with the aim of exiting investments through listings or trade sales.
The fund manager plans to hold funds for between seven and ten years, with a target internal rate of return of 18 per cent, or three times cash returns.
Swiss-Asia founder and CEO Olivier Mivelaz said, ‘District energy is the most universal answer to energy efficiency in cities and industrial parks.
‘Cogeneration, renewable energy and energy recovery can all be plugged into the urban heating networks to maximise energy efficiency and improve the local environmental footprint.’
China has a favourable legislative climate for district energy projects, making close to $30bn in annual energy infrastructure investments.
District energy asset operators in the country receive specific government incentives and stimuli, as they are recognised by the Chinese authorities for being the backbone to sustainable cities.
Swiss-Asia’s head of infrastructure investments Pying-Huan Wang said, ‘Due to the steady cash-flow generative nature of district energy assets, the fund presents a relatively low level of uncertainty in the return drivers and offers an attractive investment proposition in an inflationary environment.
‘Investors will also be able to take advantage of the expected RMB appreciation in the medium term.’
The primary industrial partner for the fund is Dalkia, which has pledged to invest up to €75m in