CapitaLand Investment (CLI) 9CI and Thailand’s real estate giant Pruksa Holding (PSH) have announced the establishment and first close of an inaugural wellness and healthcare-related real estate fund, CapitaLand Wellness Fund (C-WELL).
CLI and PSH have jointly committed an initial equity investment of $350 million towards the fund’s target equity size of $500 million, with an option to upsize to $1 billion in equity and target asset value of $2.9 billion when fully deployed.
C-WELL marks the second jointly-established fund by CLI and PSH following the launch of the CapitaLand SEA Logistics Fund last year.
The newly established fund is a Southeast Asia-anchored value-add fund with an initial focus on Singapore, Thailand and Malaysia. It targets investments in single or mixed-used assets across the wellness spectrum; comprising residential, lodging, senior living, clinics, medical suites, hospital facilities as well as wellness and lifestyle-oriented living solutions.
The fund will also have an allocation for relevant strategic development opportunities in the Asia Pacific region. C-WELL will adopt an operator-agnostic approach to its investment to ensure that its assets will reach a broader and more diverse user base.
C-WELL aims to address the rising needs and aspirations of ageing populations by creating purpose-built environments that promote wellness, comfort and a higher quality of life. This is especially as Thailand and Singapore are expected to become “super-aged” societies, with the senior population of 65 years and above likely to surpass 21% and 24% respectively by 2030.
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In line with its asset-light strategy, CLI will maintain a sponsor stake in C-WELL, contributing to its funds under management and fee-related earnings, says Patricia Goh, CLI CEO of Southeast Asia Investment.
Meanwhile, PSH Group CEO Uten Lohachitpitaks notes that the company has initiated multi-sectoral and community-level care initiatives to enhance the lives of the elderly in well-designed and purpose-driven spaces to address opportunities in the space. “Our partnership with CLI represents more than just an investment, we are committed to redefine the benchmark for wellness-focused real estate, where individuals can flourish,” he adds.
Shares in CLI closed 3 cents higher or 1.03% up on Oct 31 at $2.94.
