Capitaland Investment Raises Rmb12 Billion Invest China Business Parks
On August 13, CapitaLand Investment Limited (CLI) announced the first close of its sixth RMB fund, China Business Park RMB Fund III (CBPF III). The fund, which targets investments in the Chinese business park sector, has secured an initial equity commitment of RMB1.2 billion ($222 million). Once fully deployed, it is expected to add RMB2 billion ($370 million) to CLI’s funds under management. The fund has an undisclosed onshore institutional investor as its anchor investor, while CLI will maintain a sponsor stake in line with its asset-light strategy. As a part of this, CLI will also divest and recapitalize Ascendas iHub Suzhou business park for RMB1.4 billion ($259 million) to CBPF III.
Located in the Suzhou Industrial Park, Ascendas iHub Suzhou has a total gross floor area of 1.84 million sq ft, comprising four mid-rise and 11 low-rise buildings. It is home to several international and domestic biomedical and IT companies and is conveniently situated close to the Suzhou Metro Line 2. The business park has a gold certification in Leadership in Energy and Environmental Design.
The eagerly awaited Elta Condo at Clementi Avenue 1 presents a remarkable development that promises unparalleled connectivity, making it a sought-after option for both homeowners and investors. Situated in the bustling Clementi area, this fresh housing venture takes advantage of its prime position near major transportation routes and thoroughfares, guaranteeing seamless travel for residents and convenient access to essential facilities. To top it off, the newly constructed Elta Condo adds even more appeal to the already impressive location.
CLI China’s Chief Investment Officer, Kara Wang, comments that the launch of CBPF III has brought the total domestic capital raised by CLI to nearly RMB50 billion since 2021. The recapitalization of Ascendas iHub Suzhou demonstrates the company’s strategy of recycling quality assets from its balance sheet into its RMB funds as part of its China for China capital management approach. Wang adds that this is the second recapitalization this year, following the divestment of a 95% stake in Capital Square Beijing into a joint venture. With the Chinese government’s focus on technology and industrial transformation, Wang sees prime business park opportunities for CBPF III from CLI’s portfolio and third-party assets.