Singapore’s CapitaLand has announced plans to lift its exposure to China from a current S$1.5bn (€940m) to S$5bn, as it redirects capital from asset recycling elsewhere to the Chinese Mainland.
Its targets are business parks, logistics and data centres – segments of the China market which support the country’s tech sectors.
“This is in line with CapitaLand’s strategy to ride China’s economic transformation, focussing on technology, services and domestic consumption,” CapitaLand said.
Lucas Loh, president, China, of CapitaLand Group, said: “Even before the pandemic, CapitaLand has been keen to broaden the group’s exposure to new economy assets in China as we seek to create a balanced and diversified portfolio across asset classes and geographies.
“This conviction has been reinforced by COVID-19, during which we witnessed the relative resilience of new economy tenants who have been better able to withstand cyclical headwinds.”
Loh spoke of what he termed the “many compelling opportunities” in China’s new economy sector, whose prospects had been boosted by favourable government policies and robust demand.
The group began its recycling programme with the recent divestment of its interest in five business park properties, known as the Ascendas Xinsu portfolio, to its China-specific vehicle, CapitaLand Retail China Trust (CRCT).
CRCT provides diversification from the hospitality and lodging market in China, where the group is heavily invested.
The company said CRCT would access CapitaLand’s extensive pipeline in China to build up its portfolio.
In line with the group’s strategy to ramp up CapitaLand’s investments in business parks, Loh said it planned to co-invest with CRCT in the Ascendas Xinsu portfolio.
To read the digital edition of the latest IPE Real Assets magazine click here.
