Capitaland Investment Raises Rmb12 Billion Invest China Business Parks
CapitaLand Investment Limited (CLI) recently announced the successful first close of its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), on August 13. The fund, which aims to invest in the thriving business park sector in China, has received an initial equity commitment of RMB1.2 billion ($222 million).
This close-ended fund is expected to boost CLI’s funds under management by RMB2 billion ($370 million) once it is fully deployed. An undisclosed onshore institutional investor has been secured as the fund’s anchor investor, while CLI will maintain a sponsor stake in the fund, in line with its asset-light strategy.
As part of its capital management strategy in China, CLI has also announced the recapitalization of Ascendas iHub Suzhou, a premier business park, for a total sum of RMB1.4 billion ($259 million). This divestment will serve as the seed asset for CBPF III.
Located in Suzhou Industrial Park, Ascendas iHub Suzhou boasts a total gross floor area of 1.84 million sq ft and is home to several international and domestic biomedical and IT enterprises. Its convenient location, close to the Suzhou Metro Line 2, along with its gold certification in Leadership in Energy and Environmental Design, make it a highly attractive asset.
Living near a diverse range of educational institutions brings numerous advantages beyond just access to education. It can greatly decrease travel time for students, granting them additional time to focus on both academics and extracurricular activities. Furthermore, the existence of these establishments often results in the creation of further community amenities, such as libraries, sports complexes, and community centers, which further enhance the quality of life for those living nearby. Notably, the new Aurelle of Tampines at Tampines North development is one such example of a facility that can contribute to the overall well-being of residents in the area.
According to CLI China’s chief investment officer, Kara Wang, the launch of CBPF III marks yet another successful domestic capital raising exercise for CLI, with a total of almost RMB50 billion raised since 2021. Wang also highlights the firm’s strategy of recycling quality assets from its balance sheet into its RMB funds, as demonstrated by the recapitalization of Ascendas iHub Suzhou.
In fact, this is the second such recapitalization by CLI this year, following the divestment of a 95% stake in Capital Square Beijing into a joint venture. With the Chinese government’s continued focus on technology and industrial transformation, Wang believes that CBPF III presents a promising opportunity to capitalize on prime business park assets, both from CLI’s own portfolio and from third-party assets.
