[SINGAPORE] CapitaLand Investment (CLI) on Wednesday (May 21) announced the launch of its first onshore master fund in China, the CLI RMB Master Fund, with a total equity commitment of five billion yuan (S$921 million).
The company has also secured a domestic insurance company to take up a majority stake in the master fund, which is expected to contribute 20 billion yuan to CLI’s funds under management (FUM) when fully deployed.
The CLI RMB Master Fund will commit equity to a series of sub-funds for multi-asset class investments to enable the global real asset manager to scale through domestic capital partnerships, it said.
The sub-funds will invest in “high-quality, income-producing assets with long-term growth potential”, such as business parks, retail, rental housing and serviced residences across Tier 1 and top Tier 2 cities.
They may also invest in special opportunities in sectors such as data centres, logistics parks and offices, the real asset manager added.
Kara Wang, chief investment officer of CLI China, said: “The master fund’s strategy of investing in asset classes such as business parks, retail, rental housing and serviced residences aligns closely with China’s national priorities, supporting its transition into a consumption and innovation-driven economy.”
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In line with its asset-light strategy to grow its FUM, the global real asset manager has also secured a major domestic insurance company to take on a majority stake in the fund.
Puah Tze Shyang, chief executive officer of CLI China, said: “This allows us to tap into a rising trend of insurance companies increasing their capital allocation to real estate in China.
“With a major domestic insurance company as a co-investor in the master fund, we are well-placed to attract other insurance firms to invest in the sub-funds and rapidly expand our domestic investor base.”
With the new fund, CLI has successfully raised 54 billion yuan across seven renminbi funds since 2021.
The launch of the master fund follows CLI’s application to list its first real estate investment trust (Reit) in China, CapitaLand Commercial C-Reit (CLCR), announced in April.
CLCR’s initial portfolio comprises two major malls, the CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha, with a combined value of around 2.8 billion yuan.
Shares of CLI ended Tuesday unchanged at S$2.53.
