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 210 megawatt Taicang IDC Campus, which is valued at an estimated 5.74 billion renminbi ($793.6 million), the company said.

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

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