Capitaland Investment Raises Rmb12 Billion Invest China Business Parks
CapitaLand Investment Limited (CLI) has recently announced the first close of its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), on August 13. The fund has successfully secured an initial equity commitment of RMB1.2 billion ($222 million) with the aim of investing in the business park sector in China.
The close-ended fund is expected to significantly increase CLI’s funds under management by RMB2 billion ($370 million) once it is fully deployed. The fund has attracted an undisclosed onshore institutional investor as its anchor investor, while CLI will maintain a sponsor stake in the fund in line with its asset-light strategy.
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Moreover, CLI has also decided to recapitalize Ascendas iHub Suzhou business park by divesting it as a seed asset to CBPF III for RMB1.4 billion ($259 million).
Located in the Suzhou Industrial Park, Ascendas iHub Suzhou comprises of four mid-rise and 11 low-rise buildings with a total gross floor area of 1.84 million square feet. The business park is home to various international and domestic biomedical and IT enterprises and is strategically located near the Suzhou Metro Line 2. The building has also been awarded a gold certification in Leadership in Energy and Environmental Design.
Kara Wang, chief investment officer of CLI China, believes that the launch of CBPF III is a significant milestone in CLI’s history as it brings the total domestic capital raised to nearly RMB50 billion since 2021. She also remarks that the recapitalization of Ascendas iHub Suzhou is a strong demonstration of the firm’s strategy to recycle quality assets from its balance sheet into its RMB funds as part of a China for China capital management approach.
Wang adds, “This marks our second recapitalisation this year, following the divestment of a 95% stake in Capital Square Beijing into a joint venture. With the government’s continued focus on technology and industrial transformation, we see prime business park opportunities for CBPF III, both from CLI’s portfolio as well as third-party assets.”