Singapore’s CapitaLand Investment Raises

Singapore’s CapitaLand Investment Raises RMB3.2bil For 2 Chinese Business Parks

CHINA – In a bid to invest in business parks in China, Singapore-based CapitaLand Investment Limited (CLI) has founded 2 new onshore RMB funds for such purpose, reported The Edge on Thursday (3 November, SGT).

These consist of China Business Park Core RMB Fund I (CBPCF I) and China Business Park Core RMB Fund II (CBPCF II), which are CLI’s first business park private funds in the nation.

In particular, CBPCF I is a RMB380 million (S$76 million) fund with four local property investors, while CBPCF II is a RMB3.6 billion fund with six domestic real estate investors. CLI said it will own a 10 percent interest and a 20 percent stake in the CBPCF I and CBPCF II respectively.

CLI revealed that it has raised RMB3.2 billion in third-party capital for the 2 Chinese business park funds.

Notably, CLI has divested Ascendas i-Link, a business park in Zhangjiang Hi-Tech Park in Pudong New District, Shanghai to CBPCF I. The Singapore-based group said it will continue to oversee the property and the single-asset fund.

Zhangjiang Hi-Tech Park is one of China’s first hi-tech zones greenlighted by the State Council. The business park is home to many leading Chinese tech firms as well as Fortune 500 companies.

Meanwhile, CBPCF II will invest in a business park that is Gold-certified under Leadership in Energy and Environmental Design (LEED). The fund anticipates to close the transaction by the end of this year. The Singapore-based group will co-manage the fund with an asset management firm that is an affiliate of one of the anchor property investors.

CLI said both business parks are quality core income-generating properties that are nearly fully occupied.

“We are expanding our RMB funds to acquire business parks which have proven to be resilient in operating performance. We remain confident in the long-term prospects of China given the size of its economy, and will continue to leverage the increasing pool of domestic capital to grow our business in China,” said CLI China’s Chief Executive Puah Tze Shyang.

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