CapitaLand Investment Limited (CLI) is planning to list its first China real estate investment trust (C-REIT) in Shanghai, with a seed portfolio of two Chinese shopping malls valued at RM2.8bn (€338m).
Once approved, CapitaLand Commercial C-REIT’s (CLCR) initial public offering would mark the first international-sponsored retail C-REIT and the first such C-REIT by a Singapore-based company.
Entities associated with CLI, which manages 43 operational retail properties across 18 cities with total retail assets under management of approximately S$18bn (€12.1bn) in China, will hold at least 20% of CLCR.
Puah Tze Shyang, CEO of CLI China, said: “The proposed listing of CLCR is in line with CLI’s strategy to pursue asset-light growth and expand in China by tapping domestic capital. It will further strengthen CLI’s listed funds platform, broaden our access to perpetual domestic capital, and enable us to grow our assets under management and recurring ffee income.
“This move also complements CLCT [CapitaLand China Trust], our Singapore-listed fund for international investors looking to invest in China, allowing us to attract diverse capital sources that meet various investor requirements.”
Gerry Chan, CEO of CapitaLand China Trust Management Limited, the manager of CLCT, said: “CLCR offers a strategic opportunity for CLCT to enter the expanding C-REIT market. It provides a platform to unlock value from our mature assets, bolstering our financial flexibility to pursue income diversification and enhance portfolio quality.”
Chan said CLCR would focus on retail assets and concentrate exclusively on Mainland China.
Ben Lee, CEO of CapitaLand Development (CLD) China, said: “The proposed CLCR creates a complete cycle that covers investment, development, and management in China’s commercial real estate market, thereby improving the liquidity of commercial assets.
“It provides a capitalisation channel for CLD’s mature and high-quality stable assets in China, revitalising funds effectively. This affirms CLD’s long-term commitment to sustainable development in China.”
The proposed listing of CLCR is conditional upon the approval of CLCT’s independent unitholders at an extraordinary general meeting to be convened at a later date as well as regulatory approvals.
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