03:44 AM EST, 11/29/2024 (MT Newswires) -- VNET Group ( VNET ) said Thursday it struck an agreement with Dajia Investment Holding to form a pre-REITs fund to invest in large data centers in mainland China.

Under the agreement, the assets for the fund's initial investment will be the first two phases of VNET's ( VNET ) 210 megawatt Taicang IDC Campus, which is valued at an estimated 5.74 billion renminbi ($793.6 million), the company said.

VNET ( VNET ) said it will retain a 51% equity interest in the assets through the fund, while Dajia will acquire and hold the rest.

VNET ( VNET ) founder and Interim Chief Executive Josh Sheng Chen said the transaction shows the company's ability in "managing capital and asset operating cycles, bolstering our capital sources with long-term investors while further enhancing our balance sheet efficiency."

VNET ( VNET ) said it will consolidate the fund's financial results and underlying assets into its financial statements.