CapitaLand gets China private equity manager status, set to launch fund in 4Q21

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 has registered as a private equity fund manager (PEFM) with the Asset Management Association of China to raise yuan-denominated capital and provided fund-management services for yuan funds in China, the Singapore-based property developer said in a filing to SGX Thursday.

“This enhances the capability of the group’s investment management platform to forge more capital partnerships with China’s domestic institutional investors. It also facilitates access to the abundant liquidity in China’s financial markets to grow CapitaLand’s  funds under management (FUM) and fee related earnings,” CapitaLand said.

The first yuan-denominated fund is expected to be launched in the fourth quarter of this year, CapitaLand said. The fund will target investments in “new economy” assets such as business parks, logistics and data centers, and will include opportunistic and/or value added and core-plus assets, it said.

CapitaLand said it plans to increase its exposure to China’s new economy assets to S$5 billion over the next few years from S$1.5 billion at end-2020. The company had announced in April it would acquire its first hyperscale data center campus in Shanghai for 3.66 billion yuan.

Lee Chee Koon, group CEO for CapitaLand Group, said China was the company’s largest core market.

“As China develops into one of the world’s largest asset management markets in the next few years, we see tremendous potential to tap the market liquidity for scaling our investment management platform,” Lee said in the statement. “Our registration as a PEFM in China is thus a timely development that will also provide a boost to CapitaLand’s transition towards an asset-light and capital-efficient business model.”

Puah Tze Shyang, CEO of investment and portfolio management for CapitaLand China, added that PEFM status will diversify the company’s domestic investor base in China as well as complementing the existing offshore capital platforms, including CapitaLand China Trust and its portfolio of private funds.