SINGAPORE (Apr 22): CapitaLand announced that it has successfully set up its first discretionary real estate equity fund – CapitaLand Asia Partners I (CAP I) – after raising US$391.3 million ($528.3 million) for the fund’s first closing, nine months after fundraising started in July 2018.
The establishment of CAP I is a part of CapitaLand’s efforts to ramp up its discretionary real estate funds business, as this comes on the back of CREDO I China, the group’s maiden discretionary real estate debt fund, in Feb 2019.
Capital commitments were received from a diverse group of institutional investors including pension funds, insurance companies and financial institutions from Asia and Europe.
See: CapitaLand announces launch of US$750 mil discretionary real estate debt fund in China
Incorporated in the Cayman Islands, CAP I is established as a wholly-owned subsidiary of CapitaLand.
The fund taps into CapitaLand’s extensive network and strong asset management expertise, and invests in value-add and transitional office buildings in Asia’s key gateway cities, specifically Singapore, Beijing, Guangzhou, Shanghai, Shenzhen, Osaka and Tokyo.
Lee Chee Koon, CapitaLand’s president & group CEO, says, “CAP I is CapitaLand’s first discretionary private equity fund that allows us to make full investment and asset management decisions on behalf of our capital partners. The expansion from our traditional club funds to commingled fund provides CapitaLand with more diverse capital partners, and the speed of CAP I’s first closing demonstrates investors’ confidence in CapitaLand’s ability to deliver strong returns for their investments. Continual high demand for quality commercial properties in Asia’s key gateway cities, coupled with low supply, have made the renewal of ageing commercial assets a compelling investment strategy in these markets.”
“With the addition of CAP I and following recent shareholders’ approval of CapitaLand’s acquisition of Ascendas-Singbridge, CapitaLand is well poised to become one of the top 10 largest real estate investment managers globally, with an enlarged fund management platform comprising 24 private funds and eight listed real estate investment trusts,” says Lee.
Shares in CapitaLand last traded at $3.64 on Friday.
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