Mintz revealed that there are several deals under discussion at the moment, adding that he hopes two or three of them can be finalized by 2007. The size of investment will not be capped.

Warburg Pincus already holds shares in Chinese property companies Guangzhou R&F, Greentown China, Sunshine 100 and Olive City.

It also recently acquired shares in Shenzhen-based budget hotel chain 7 Days Inn. Warburg Pincus invested US$20 million in the company, which has 10 hotels in Beijing, Shenzhen and Hubei Province's capital of Wuhan.

Talking about the rate of return, Mintz said there is no specific benchmark for the investments. "The global standard is about 20 per cent, but we don't set a hard target for it," he said.

The company normally holds its stakes for at least six months and ignores the share price fluctuation. "We hope to collaborate with the company's management to add value to the company in the long term," Mintz said.

"The injection into Greentown China has brought us a more than 100 per cent return so far, but we have no intention of pulling out or slashing our holdings."

As for stakes of Guangzhou R&F, which Warburg Pingus sold in three batches this year, Mintz agreed that now is a better time to unload with the stock price lingering around HK$15.

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