SINGAPORE - CapitaLand Investment (CLI) is divesting a 95 per cent stake in Capital Square Beijing to AIA Life Insurance through a 2.4 billion yuan (S$447 million) joint venture set up with the Hong Kong-based insurance group.
Under the partnership, CLI will retain a 5 per cent interest in Capital Square Beijing, while providing asset management services for the joint venture.
This is expected to contribute to CLI’s recurring fee income, said the real estate investment manager on Jan 31.
CLI’s chief executive for China Puah Tze Shyang noted that the transaction marks the second time CLI has partnered AIA in China. AIA had invested in one of its renminbi-denominated funds in 2022.
“We remain focused on being asset light and capital efficient, while continuing to scale up our fund management business,” he added.
Capital Square Beijing is a Grade A office building located in Beijing’s Chaoyang District, with a total above-ground gross floor area of 44,759 sq m.
It was acquired by CLI in October 2022 through a court auction. Subsequently, it underwent an asset enhancement initiative to upgrade the building’s facilities, revitalise its tenant mix and improve its operational efficiencies.
Shares of CLI closed one cent lower at $2.96 on Jan 31. THE BUSINESS TIMES
