CapitaLand raises US$391.3m in first close of discretionary property equity fund

Investors include institutional investors such as pension funds, insurance companies and financial institutions from Asia and Europe, said CapitaLand.
Investors include institutional investors such as pension funds, insurance companies and financial institutions from Asia and Europe, said CapitaLand.ST PHOTO: KUA CHEE SIONG

SINGAPORE - 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; fundraising commenced nine months before, in July 2018.

CapitaLand Asia Partners I (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.

James Lim, CEO 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.

Lee Chee Koon, CapitaLand's president and group CEO, 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 previously raised US$556 million in its first closing of Credo I China, the company's first discretionary real estate debt fund, in February 2019. CapitaLand expects the Credo I China fund 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.