Warburg Pincus is evaluating a potential divestment of Sunsea Parking Industry Group, the Chinese car park operator. People with knowledge of the matter, who asked not to be named because the process is private, said the firm is working with advisers and that a sale may fetch about $300 million.
A Warburg Pincus representative declined to comment. Sunsea Parking did not provide a comment right away when asked.
In 2017, the firm put together a 1.5 billion yuan investment in Sunsea, which at the time was worth $225 million. Warburg Pincus's website says Sunsea runs operations in more than 40 cities.
Chief Executive Officer Jeffrey Perlman has contended that lower borrowing costs keep China appealing for buyout activity, and he has warned that retreating from the market or taking eyes off it would be a mistake. Even so, some portfolio companies are pruning China exposure, including ESR Group Ltd., and Princeton Digital Group, which is in the process of selling data centers in the country.
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If a sale proceeds near the signposted $300 million mark, it would add another data point to how private equity is repositioning in China while still hunting buyouts. Keep an eye on formal sale steps or disclosures from Warburg Pincus-backed names in China, especially where asset sales and footprint reductions could ripple into valuations and deal flow.
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