CapitaLand to inject two Shanghai office buildings into real-estate equity fund

The Innov Center in Shanghai, which CapitaLand plans to inject into its discretionary real-estate equity fund, CapitaLand Asia Partners I (CAP I).The Innov Center in Shanghai, which CapitaLand plans to inject into its discretionary real-estate equity fund, CapitaLand Asia Partners I (CAP I).

CapitaLand entered a deal to divest its interest in the companies holding Innov Center in Shanghai’s Yangpu District to its discretionary real-estate equity fund, CapitaLand Asia Partners I (CAP I), the developer said in a filing to SGX before the market open Friday.

The price will take into account an agreed property value of 3.10 billion yuan, or around S$621 million, the filing said.

The deal is expected to be completed in the third quarter, and follows CAP I’s first closing by about a month, CapitaLand said.

Other pipeline assets for CAP I include Pufa Tower, an office development in Shanghai’s Lujiazui central business district, CapitaLand said.

“Shanghai Innov Center, a predominantly office integrated development located in a mature, technology-focused decentralised office market, was acquired in 2017 to be the seed asset to kickstart CapitaLand’s discretionary fund business,” Lee Chee Koon, president and CEO of CapitaLand, said in the statement.

“Since acquisition, CapitaLand, through our market-leading asset management capabilities, has successfully added significant value to
the property through asset enhancement initiative and active leasing management, to meaningfully de-risk the property on behalf of CAP I investors,” Lee added.

CapitaLand’s senior management was set to attend an event Friday to unveil its Raffles City The Bund, which was acquired by a 50:50 joint venture between CapitaLand’s Raffles City China Investment Partners III and Singapore’s state-owned investment company GIC, the statement said.

Raffles City China Investment Partners III is 41.7 percent owned by CapitaLand, with the remainder held by investors from Asia, North America and the Middle East.

Raffles City The Bund, located in Shanghai’s North Bund, will be opening in phases from the second half of this year, the filing said.

It is CapitaLand’s 10th Raffles City development globally and its third in Shanghai, the filing said.

 

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