CapitaLand China Trust (CLCT) has acquired four logistics properties in China for RMB1.7bn (€226m)
The trust was recently renamed from CapitaLand Retail Trust, and the acquisition of the 265,259sqm portfolio marks CapitaLand’s entry into the China logistics market.
The trust has proposed to do a private placement to raise S$120m (€76m) to part-fund the transaction.
Tan Tze Wooi, CEO of the manager, said: “The acquisition will enable CLCT to tap China’s strong demand for logistics properties, which is supported by conducive government policies and boosted by accelerated growth in e-commerce.”
He said the acquisition was in line with the REIT’s investment strategy and near-term focus on new economy assets.
Post-acquisition, the proportion of new economy assets by asset value in CLCT’s enlarged portfolio will rise to 21.4% from 15.3%.
With assets under management totalling S$4.7bn CLTC will be the largest multi-asset China-focused real estate investment trust in Singapore.
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