SINGAPORE (THE BUSINESS TIMES) – CapitaLand Investment (CLI) has established its first onshore renminbi fund in China as part of its asset-light strategy to grow its funds under management.
The property player holds a 12 per cent stake in the 700 million yuan (S$144 million) fund, in partnership with a domestic asset management company, CLI said on Wednesday (June 22).
The company also said the fund is acquiring a quality office building in Shanghai “at an attractive price”, where the transaction is expected to be completed in July 2022.
Simon Treacy, chief executive of private equity real estate, real assets at CLI, said: “We are increasing our fundraising channels by tapping on China’s domestic capital, which we believe represents a deep pool of investable capital that enables CLI to further build on its experience and track record in the country.”
Mr Treacy noted that CLI will look at launching more renminbi funds, as well as work with both its domestic and international network of capital partners to capture investment opportunities in China across different asset classes.
As at March 31, CLI has a portfolio of more than 200 properties across over 40 Chinese cities, with total assets under management of $46 billion in China.
Shares of CLI closed at $3.81 on Tuesday, down one cent or 0.3 per cent.