CapitaLand Investment launches CNY700M onshore China yuan fund

Chinese yuan (renminbi) notes. Photo by Eric Prouzet on UnsplashChinese yuan (renminbi) notes. Photo by Eric Prouzet on Unsplash

CapitaLand Investment has launched its first onshore China yuan-denominated fund in a tie-up with a domestic asset management company, the real estate investment manager (REIM) said in a filing to SGX Wednesday.

The REIM said it has a 12 percent stake in the CNY700 million, or around S$144 million, fund, which will be acquiring a Shanghai office building at “an attractive price.” The deal is expected to be completed in July, the filing said.

Simon Treacy, CEO of private equity real estate for CapitaLand Investment, said in the statement that the fund will expand the REIM’s private fund management business.

“We are increasing our fundraising channels by tapping on China’s domestic capital, which we believe represents a deep pool of investable capital that enables CLI to further build on its experience and track record in the country,” Treacy said. “We will look at launching more RMB funds, and work with both our domestic and international network of capital partners to capture special situation as well as other investment opportunities in China, across different asset classes.”

CapitaLand Investment’s private fund management business has started nine private funds since 2021, raising more than S$1.9 billion in third-party capital for investments across new economy, office and student accommodation assets, the statement said.