CapitaLand Investment's China REIT, CapitaLand Commercial C-REIT (CLCR), has received approval to register for a listing. The listing is likely to be by the end of the year. .
In an announcement on Aug 27, CLI says that the China Securities Regulatory Commission has given CLCR the go-ahead to register for its listing on the Shanghai Stock Exchange.
CLCR is expected to raise some RMB2.1 billion, or $375 million, through the issuance of 400 million units.
"This marks a significant milestone for CLI as CLCR will become China’s first international-sponsored retail C-REIT upon listing," says CLI.
CLCR will be CLI’s eighth listed fund, expanding its REIT management platform to China and strengthening CLI’s leading position as Asia Pacific’s largest REIT manager by market capitalisation.
"The listing aligns with CLI’s domestic-for-domestic fund strategy to tap onshore capital and grow its funds under management and recurring fee income," says CLI.
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CLCR will invest in operating retail assets in China, benefiting from the Chinese government’s policies to stimulate domestic consumption.
CLCR's initial portfolio comprises two malls, the CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha.
These two malls have a combined gross floor area of 168,405 sqm and an overall occupancy rate of 96% as at March 31.
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"These assets provide stable rental income, supported by a diversified tenant base and experienced on-the-ground asset management teams with a strong track record in reconfiguring retail spaces to maximise returns and curating experiential environments," says CLI.
Post listing, CLI, CapitaLand China Trust and unlisted CapitaLand Development will collectively hold at least a 20% interest in
CLCR.
As the sponsor and asset manager of CLCR, CLI will continue to operate the two malls.
In addition, CLI will support the growth of CLCR and CLCT with a pipeline of potential assets.
With some three decades of operating experience in China, CLI now manages 43 operational retail properties across 18 cities with total retail assets under management of some $18 billion in the world's second-largest economy.
CLI shares closed at $2.75 on Aug 27, down 0.36% for the day; CLCT closed at 74 cents, unchanged for the day.
