CapitaLand raises US$391 million for first real-estate equity fund

Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.

CapitaLand raised US$391 million, or around S$528.3 million, for its first discretionary real-estate equity fund, CapitaLand Asia Partners I (CAP I), to invest in value-add and transitional office buildings in gateway cities in Asia, the property developer said in a filing to SGX before the market open on Monday.

The cities targeted for investments are Singapore, Beijing, Guangzhou, Shanghai, Shenzhen, Osaka and Tokyo, the filing said.

The fund, which closed after nine months of fundraising, received commitments from a diverse group of institutional investors, including pension funds, insurance companies and financial institutions, CapitaLand said.

“The expansion from our traditional club funds to commingled fund provides CapitaLand with more diverse capital partners, and the speed of CAP I’s first closing demonstrates investors’ confidence in CapitaLand’s ability to deliver strong returns for their investments,” Lee Chee Koon, CapitaLand’s president and CEO, said in the statement.

“Continual high demand for quality commercial properties in Asia’s key gateway cities, coupled with low supply, have made the renewal of ageing commercial assets a compelling investment strategy in these markets,” he added.

CAP 1 already has a pipeline of potential investment targets, with capital expected to be invested in the coming months, the statement said.

The news followed CapitaLand’s announcement in February that it launched CREDO I China, its first discretionary real estate debt fund, after raising US$556 million to invest in offshore U.S. dollar-denominated subordinated instruments for real estate in China’s first and second tier cities.


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