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The proposed injection of Innov Center to CAP 1 comes one month after the first closing of the discretionary real estate equity fund.
CapitaLand has agreed to divest its interest in companies holding Innov Center in Shanghai to its maiden discretionary real estate equity fund, CapitaLand Asia Partners I (CAP I).
Set for completion in Q3 2019, the proposed injection of Innov Center to CAP 1 comes one month after the first closing of the discretionary real estate equity fund.
Shanghai Innov Center was acquired in 2017 to serve as “the seed asset to kickstart CapitaLand’s discretionary fund business”, revealed CapitaLand Group president and group CEO Lee Chee Koon.
Other pipeline assets to be injected to CAP I include office development Pufa Tower in Shanghai.
“Upon the successful first closing of CAP I, the property will now be transferred to the fund from CapitaLand’s balance sheet,” noted Lee.
“Active and disciplined asset recycling is an important part of CapitaLand’s strategy to enhance returns and to rejuvenate and rebalance our portfolio. To this end, we have set an annual divestment target of at least S$3 billion,” he said.
Meanwhile, Lee expects the acquisition of Ascendas-Singbridge to strengthen the company’s development pipeline, expand its slate of REITs and funds as well as increase its scale in investment properties across asset classes and geographies.
“The enlarged CapitaLand entity will also provide us with a robust pipeline of assets to enrich our fund management platform to build scale, synergy and sustainable growth in our core markets,” he added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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