Global real asset manager CapitaLand Investment Limited (CLI) announced that it has closed a second onshore sub-fund under its renminbi-denominated master fund in China at 1 billion yuan (about $142 million).
The fund, China Retail RMB Fund I (CRF I) secured equity commitment from the master fund, CLI RMB Master Fund, and several onshore institutional investors, CLI said.
When fully deployed, CRF I is expected to add 1.48 billion yuan to CLI’s funds under management, it added. CLI closed the first sub-fund under the platform, China Business Park RMB Fund IV, in September with a total equity commitment of 1.74 billion yuan.
“Since launching our RMB Master Fund in May, we have received strong investor endorsement with the close of two sub-funds in quick succession,” said Puah Tze Shyang, CEO of CLI (China).
CLI said it will seed the vehicle by selling CapitaMall Xinduxin, a 141,000-square-metre shopping mall in Qingdao’s Shibei district, into the fund as part of a recapitalisation.
The mall has committed occupancy of about 99.6% and is linked to Qingdao’s subway Line 3. CLI will continue to manage the property and earn recurring fees, it added.
Kara Wang, chief investment officer of CLI China, said the transaction reflects a push to recycle stabilised assets into RMB funds and free up capital for reinvestment.
“CLI remains focused on expanding our RMB funds platform while driving capital efficiency and long-term value creation,” said Wang.
CLI launched CLI RMB Master Fund in May, backed by a total equity commitment of 5 billion yuan ($692.5 million).
The fund targets business parks, retail, rental housing, and serviced residences across tier-one and top tier-two cities in China.
The master fund will invest in a series of sub-funds that seek to acquire “high-quality, income-producing assets with long-term growth potential.” Future sub-funds may also explore special opportunities in other sectors such as data centres, logistics parks, and offices.
