CapitaLand Investment Limited (CLI) announced the first close of its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), with an initial equity commitment of RMB1.2 billion ($222 million) to invest in the business park sector in China. CLI has secured an onshore major institutional investor as the fund’s anchor investor. The close-ended fund is expected to add RMB2 billion ($370 million) to CLI’s funds under management (FUM) when fully deployed. CLI will maintain a sponsor stake in CBPF III in line with its asset-light strategy to grow its FUM while keeping strong alignment with its investors and partners.
CLI will recapitalise Ascendas iHub Suzhou by divesting it as a seed asset to CBPF III for RMB1.4 billion ($259 million). CLI will continue to manage the property which will contribute to its recurring fee income.
Ascendas iHub Suzhou is located in Dushu Lake Science & Education Innovation District which is part of the Suzhou Industrial Park. Since it started operations in 2011, Ascendas iHub Suzhou has attracted numerous international and domestic biomedical and IT enterprises. The property comprises four mid-rise and 11 low-rise buildings with a total gross floor area of approximately 170,800 square metres. It is well supported by a mix of amenities and services and located in close proximity to Suzhou Metro Line 2. Ascendas iHub Suzhou has a Leadership in Energy and Environmental Design Gold certification.
