(Updates with details on China’s effort to curb property market gains in 3rd paragraph.)

Sept. 6 (Bloomberg) -- KKR & Co., the private-equity firm managed by Henry Kravis and George Roberts, and Sino-Ocean Land Holdings Ltd. agreed to form a real estate joint venture in China with a commitment of $70 million each.

The new company will make a net investment of $64.3 million in a property project, Chaoyang, China-based developer Sino- Ocean is building in Dalian in the country’s northeast, according to a Hong Kong stock exchange filing yesterday.

This is KKR’s first announced real estate investment in China after its managers said on a conference call last month they are increasing the size of the New York-based firms real- estate and China teams. China will expand its efforts to curb price gains in smaller cities after limiting home purchases in Beijing and Shanghai, according to a July 14 summary of a State Council meeting. KKR, through KKR China Growth Fund LP, and Sino-Ocean will invest an additional $1 million each through the new fund’s general partner, according to a separate statement to Hong Kong’s stock exchange yesterday. In China, KKR owns stakes in companies ranging from financial leasing, to farming and the cement industry.

--Editor: Mohammed Hadi

To contact the reporters on this story: Joshua Fellman in New York at jfellman@bloomberg.net; Cathy Chan in Hong Kong at kchan14@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net