CapitaLand Investment Limited (CLI) has raised S$1.1bn (€774m) for a new real estate strategy to invest in special-situation opportunities in China.

The newly created CapitaLand China Opportunistic Partners Programme (CCOP Programme) comprises a S$291m single-asset fund and an S$824m programmatic joint venture.

Global investors have committed S$892m for an 80% stake in the programme. CLI has a 20% co-investment in the vehicle.

Simon Treacy, CEO of private equity, CLI, told IPE Real Assets: “The CCOP Programme will invest in special situation opportunities in China in the commercial and new economy real estate sectors. such as office, retail, logistics and industrial.

“We have a buy-fix-sell strategy. The timing of the exit will depend on market conditions and will be on a case-by-case base.”

CLI has acquired Beijing Suning Life Plaza, an integrated development comprising office and retail components in Beijing’s Central Business District, for S$553m from a Chinese company to form a single-asset fund. This fund will invest in the repositioning of the shopping mall, with plans to convert and upgrade the retail space into a grade-A office.

In its first transaction, the joint venture bought a logistics development in Foshan, Guangdong for S$157m. CLI acquired the project, which is pre-leased to a domestic textile e-trading platform, in May 2022 as a seed asset for the CCOP Programme.

Puah Tze Shyang, CEO of China, CLI, said: “The establishment of CCOP Programme following our three onshore RMB funds and China Data Centre Partners (CDCP) fund demonstrates CLI’s strong ability to raise both onshore and offshore funds to accelerate our growth in China.”

Since June 2022, CLI has established three onshore RMB funds, raising close to S$780m in third-party capital and bringing 10 new Chinese investors into CLI’s network of capital partners.

As of 31 December 2022, CLI had a total of 12 private investment vehicles in China holding 31 properties with funds under management of S$21.3bn.

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