CapitaLand Investment (CLI) has closed its second onshore sub-fund, China Retail RMB Fund I (CRF I), under the CLI RMB Master Fund.
In addition to the equity commitment from the Master Fund, CLI has secured several onshore institutional investors, bringing the total fund size to RMB1 billion ($183 million).
CRF I is expected to add RMB1.48 billion to CLI’s funds under management (FUM) when fully deployed.
With this close, announced Dec 11, CLI has raised nearly RMB55 billion of domestic capital across nine onshore funds since 2021, reflecting the depth of investor demand.
CLI will recapitalise CapitaMall Xinduxin by realising value through its sale as the seed asset to CRF I. Located in Qingdao’s Shibei District, CapitaMall Xinduxin is a retail asset with a gross floor area of 141,000 sqm and a committed occupancy of approximately 99.6%. The shopping mall is directly connected to Qingdao’s subway line 3. CLI will continue to manage the property and earn recurring fee income.
Puah Tze Shyang, CEO of CLI (China), says: “Since launching our RMB Master Fund in May, we have received strong investor endorsement with the close of two sub-funds in quick succession. CRF I offers investment opportunities in a well-located, quality retail asset with strong catchment, a curated tenant mix, and active asset management to capture growth."
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Kara Wang, CIO of CLI (China), says: “The recapitalisation of CapitaMall Xinduxin reflects our disciplined approach to recycling quality assets into RMB funds under our domestic-for-domestic strategy. Since the start of the year, we have recapitalised approximately RMB6.7 billion of assets in China, unlocking capital for reinvestment into new growth opportunities.”
CLI’s first sub-fund under the Master Fund was the China Business Park RMB Fund IV, which closed in September with a total FUM of RMB1.74 billion and Dalian Ascendas IT Park as its seed asset. CLI has a pipeline of retail, business park, logistics and rental housing assets across Tier-one and top Tier-two cities to support future sub-funds of the RMB Master Fund.
