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Singapore property giant CapitaLand has established a US$1.5 billion (about S$2.0 billion) fund that will invest in prime integrated developments in gateway cities across China.
Known as Raffles City China Investment Partners III (RCCIP III), the eight-year fund is the largest private equity partnership set up by CapitaLand so far.
Aside from being the third integrated development private investment vehicle created by CapitaLand in China, the fund also drew strong support. In fact, major investors from Asia, North America and the Middle East have collectively subscribed a 58.3 percent interest in RCCIP III, while CapitaLand holds a 41.7 percent sponsor stake in the vehicle, which will be managed by CapitaLand Fund Management.
According to Lucas Loh, CEO of CapitaLand China, the Chinese market has robust long-term investment potential with continued demand for property.
“These socio-economic themes feature prominently in Chinese gateway cities where the growth trajectory remains robust, heralding opportunities for integrated developments around key transportation hubs,” added Loh.
“With RCCIP III, CapitaLand now manages 16 real estate private platforms, and five real estate investment trusts with assets under management (AUM) worth over S$45 billion. RCCIP III brings us closer towards our goal of raising funds with a total AUM of up to S$10 billion by 2020,” added CapitaLand’s Group Chief Financial Officer, Arthur Lang.
Aside from the US$1.5 billion fund, CapitaLand also manages a US$1.18 billion (S$1.64 billion) Raffles City China Fund that invested in five Raffles City developments in China — Raffles City Shanghai, Raffles City Beijing, Raffles City Chengdu, Raffles City Ningbo and Raffles City Hangzhou. There is also a $1.03 billion (S$1.43 billion) vehicle that invested in a Raffles City project in Changning district, Shanghai.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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