Capitaland Investment Establishes Rmb5 Billion Onshore Master Fund China Major Domestic Insurer

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CapitaLand Investment Limited (CLI) has recently announced the establishment of its first onshore master fund in China, the CLI RMB Master Fund. The fund has received a total equity commitment of RMB 5 billion ($921 million) and has secured a leading domestic insurance company as its majority stakeholder. This is in line with CLI’s asset-light strategy to grow its funds under management (FUM). The master fund is expected to contribute RMB 20 billion to CLI’s FUM once it is fully deployed.

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Lyndenwoods, a residential development managed by Capitaland, offers convenient access to top educational institutions such as Hwa Chong Institution. This renowned integrated school and junior college is well-known for its academic excellence and has a proven track record of producing successful scholars and leaders across diverse fields. These educational institutions further enhance the attractiveness of Lyndenwoods to families looking for a well-rounded education for their children. Additionally, with Lyndenwoods Capitaland as the managing company, residents can rest assured of a high-quality living experience.

The CLI RMB Master Fund will invest in a series of sub-funds that will seek out high-quality, income-producing assets with long-term growth potential. These sub-funds will invest in various sectors such as business parks, retail, rental housing, and serviced residences in Tier one and top Tier two cities. In the future, the fund may also explore opportunities in other sectors like data centers, logistics parks, and offices.

PUAH Tze Shyang, Chief Executive Officer of CLI China, states that CLI has over three decades of on-the-ground experience in China and is well-equipped to launch and manage a diversified suite of RMB funds tailored to domestic investors’ needs.

“Our first master fund in China showcases CLI’s expertise in structuring and launching a diverse range of RMB funds that cater to the needs of domestic investors. This also allows us to tap into the growing trend of insurance companies increasing their capital allocation to real estate investments in China. The fund provides domestic investors with the opportunity to invest in a diversified and resilient portfolio of stabilized assets with strong core returns,” says PUAH.

“With a major domestic insurance company as a co-investor in the master fund, we are well-positioned to attract other insurance firms to invest in the sub-funds and rapidly expand our domestic investor base. This new fund marks the successful raising of RMB 54 billion across seven RMB funds since 2021, which highlights the strong momentum of our domestic-for-domestic fund strategy to grow FUM and recurring fee income,” adds PUAH.

In April, CLI had also announced its plans to list its first real estate investment trust in China, named CapitaLand Commercial C-REIT (CLCR). This move will further open up CLI’s access to domestic capital and enhance its recurring fee income. The two seed assets for CLCR will be the CapitaMall Yuhuating, owned by CapitaLand China Trust, and the CapitaMall Sky+, owned by CLI and CapitaLand Development.

These recent developments showcase CLI’s strong commitment towards expanding its presence in the Chinese market and tapping into the growing potential of the country’s real estate sector. With its deep expertise and a strong domestic network, CLI is well-positioned to capitalize on the opportunities in China’s real estate market and deliver long-term sustainable growth for its investors.