CapitaLand has raised US$391.3 million (S$530.4 million) for its first discretionary real estate equity fund, CapitaLand Asia Partners I (CAP I).

Investors include institutional investors such as pension funds, insurance companies and financial institutions from Asia and Europe, the real estate group said.

It is the fund's first closing. Fund-raising commenced nine months before, in July last year.

CAP I will invest in "value-add and transitional" office buildings in Asia's key gateway cities, specifically Singapore, Beijing, Guangzhou, Shanghai, Shenzhen, Osaka and Tokyo, CapitaLand said in a Singapore Exchange filing.

Such buildings are completed commercial assets with upgrading opportunities, or assets that can be converted for commercial use.

CapitaLand said it is well established and has a proven track record as a developer-owner-operator in these cities.

Mr James Lim, chief executive of CapitaLand Investment Management, said CAP I has a ready pipeline of investment opportunities for capital deployment and expects to utilise the capital in the coming months.

CapitaLand is in advanced discussion with potential capital partners in Asia, Europe, North America and the Middle East, and expects subsequent closings for the fund, he added.

Mr Lee Chee Koon, CapitaLand's president and group chief executive, said: "CAP I is CapitaLand's first discretionary private equity fund that allows us to make full investment and asset management decisions on behalf of our capital partners. The expansion from our traditional club funds to commingled fund provides CapitaLand with more diverse capital partners."

Before CAP I was announced, CapitaLand raised US$556 million in its first closing of Credo I China - the company's first discretionary real estate debt fund - in February.

CapitaLand expects Credo I China to raise a total of US$750 million for investment in offshore US dollar-denominated subordinated instruments for property in China's first-and second-tier cities.