CapitaLand is to divest partial stakes in six mixed-use developments in China under the Raffles City platform to China’s Ping An Life Insurance for RMB46.7bn (€6.1bn).

The portfolio consists of Raffles City Beijing, Raffles City Shanghai, Raffles City Ningpo, Raffles City Chengdu, Raffles City Changning (Shanghai) and Raffles City Hangzhou.

The divestment will net proceeds of more than S$2bn (€1.2bn), Singapore-based CapitaLand said, adding that it will retain a 12.6% to 30% stake in each development and continue as asset manager.

Lee Chee Koon, the CEO at CapitaLand Group, said the group had built up an investment property pipeline of more than S$24.4bn of assets in China and was well-placed to drive and participate in future growth.

Puah Tze Shyang, CEO, investment and portfolio management, CapitaLand China, said: “Part of the unlocked capital will be used to support the group’s investment pivot to new economy assets such as business parks, logistics and data centres, forming a new pipeline for future recycling.”

He said CapitaLand plans to grow its China exposure in this sector to S$5bn over the next few years, from the S$1.5bn at the end of last year.

Including this transaction, CapitaLand has announced gross divestments of about S$11.2bn year-to-date, more than three times its annual divestment target of S$3bn.

To read the digital edition of the latest IPE Real Assets magazine click here.