CapitaLand Investment and a Chinese insurance company are to invest RMB5bn (€613m) to establish a real estate master fund in China.
CapitaLand said the unnamed Chinese institution has taken up a majority stake in the CLI RMB Master Fund which will invest in a series of sub-funds, managed by CapitaLand.
These sub-trusts will acquire high-quality, income-producing assets with long-term growth potential, including business parks, retail, rental housing and serviced residences.
Future sub-funds may also invest in special opportunities in other sectors such as data centres, logistics parks and offices.
Puah Tze Shyang, CEO of CLI China, said: “With a major domestic insurance company as a co-investor in the master fund, we are well-placed to attract other insurance firms to invest in the sub-funds and rapidly expand our domestic investor base.
“With this new fund, we have successfully raised RMB54bn across seven RMB funds since 2021, demonstrating the strong momentum of our domestic-for-domestic fund strategy to grow FUM and recurring fee income,” said Puah.
The master fund is expected to contribute RMB20bn to CLI’s funds under management when fully deployed.
Kara Wang, CIO of CLI China, said: “CLI’s strong balance sheet enables us to co-invest in our private funds, aligning our interests with those of our capital partners.
“The master fund’s strategy of investing in asset classes such as business parks, retail, rental housing and serviced residences aligns closely with China’s national priorities, supporting its transition into a consumption- and innovation-driven economy.”
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