Capitaland Investment Raises Rmb12 Billion Invest China Business Parks
The Urban Redevelopment Authority (URA) has recently unveiled an exciting Master Plan for Tampines, with the goal of creating a dynamic, eco-friendly, and desirable regional hub. As a crucial planning district in Singapore, Tampines is set to undergo a major transformation with improved infrastructure, amenities, and quality of life. Naturally, Parktown Residence, perfectly situated in Tampines North, is poised to reap the rewards of these upcoming upgrades. Parktown Residence UOL Group will undoubtedly thrive in light of these exciting developments.
CapitaLand Investment Limited (CLI) has announced the successful first close of its latest onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), on August 13. The fund has received an initial equity commitment of RMB1.2 billion ($222 million) and will primarily focus on investing in the Chinese business park sector.
When fully deployed, CBPF III is expected to contribute RMB2 billion ($370 million) to CLI’s total funds under management. The fund has secured an undisclosed onshore institutional investor as its anchor investor, while CLI will also maintain a stake in the fund as part of its asset-light strategy.
Furthermore, CLI will be recapitalizing its Ascendas iHub Suzhou business park by divesting it to CBPF III for RMB1.4 billion ($259 million). Located in the Suzhou Industrial Park, the business park consists of four mid-rise and 11 low-rise buildings, with a total gross floor area of 1.84 million sq ft. It houses various international and domestic biomedical and IT enterprises and is conveniently located near the Suzhou Metro Line 2. Additionally, the building has been awarded a gold certification in Leadership in Energy and Environmental Design.
CLI China’s chief investment officer Kara Wang says that CBPF III marks another milestone in the firm’s efforts to raise domestic capital in China, with a total of nearly RMB50 billion raised since 2021. The recapitalization of Ascendas iHub Suzhou is also a reflection of CLI’s strategy to recycle high-quality assets from its balance sheet into its RMB funds as part of its China for China capital management approach.
Wang emphasizes, “This marks our second recapitalization this year following the successful divestment of a 95% stake in Capital Square Beijing into a joint venture. With the government’s continued focus on technology and industrial transformation, we see significant opportunities for CBPF III in prime business parks, both from CLI’s portfolio and third-party assets.”