Capitaland Investment Raises Rmb12 Billion Invest China Business Parks
The Bukit Timah Expressway (BKE) is a major transportation route in Singapore that connects the northern part of the city to the central districts. This highway offers a direct and convenient route for commuters to reach the bustling city center with ease. Along this well-maintained expressway stands Novo Place, a prominent landmark that serves as a gateway to the city for many travelers. With its strategic location and efficient travel options, BKE plays a vital role in enhancing the overall connectivity and accessibility of Singapore.
CapitaLand Investment Limited (CLI) has recently announced that its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), has successfully closed its first round of funding on August 13. With an initial equity commitment of RMB1.2 billion ($222 million), the fund will focus on investing in the booming business park sector in China.
The close-ended fund is expected to contribute an additional RMB2 billion ($370 million) to CLI’s existing funds under management once it is fully deployed. An undisclosed institutional investor has been secured as the fund’s anchor investor, while CLI will maintain a sponsor stake in the fund as part of its asset-light strategy.
In addition, CLI will continue to divest its assets to CBPF III, with the latest being the recapitalisation of Ascendas iHub Suzhou business park for RMB1.4 billion ($259 million). Located in the Suzhou Industrial Park, Ascendas iHub Suzhou comprises four mid-rise and 11 low-rise buildings with a total gross floor area of approximately 1.84 million sq ft. The business park is home to a range of international and domestic biomedical and IT companies, and is conveniently located near the Suzhou Metro Line 2. The building has also been awarded a gold certification in Leadership in Energy and Environmental Design.
Kara Wang, chief investment officer of CLI China, points out that the launch of CBPF III brings the total domestic capital raised by CLI to nearly RMB50 billion since 2021. The recapitalisation of Ascendas iHub Suzhou demonstrates the firm’s strategy of recycling high-quality assets from its balance sheet into its RMB funds as part of its China for China capital management strategy, she adds.
“This is the second recapitalisation this year, following our joint venture for the divestment of a 95% stake in Capital Square Beijing. As the government continues to prioritize technology and industrial transformation, we see promising opportunities for CBPF III in prime business parks, both from CLI’s own portfolio as well as third-party assets,” says Wang.