CapitaLand, CITIC set up yuan fund

CapitaLand, CITIC set up yuan fund


CAPITALAND and CITIC Trust will jointly establish the first yuan-denominated real estate private equity fund in China – the CITIC CapitaLand Business Park Fund (CCBPF), which will invest in business parks in China such as CapitaLand’s Beijing IBM China Centre.


The fund was successfully closed on June 6 after raising 500 million yuan (S$99.5 million). CapitaLand has a 50 per cent sponsor stake while Chinese corporate investors and high net worth individuals have subscribed for the remaining interests through the CITIC CapitaLand Business Park Trust Plan.


CapitaLand will manage the fund jointly with CITIC Trust through a newly incorporated company, CITIC CapitaLand (Beijing) Management Consulting Co.


CCBPF is also sourcing other investment opportunities in China.


Lim Ming Yan, CEO of CapitaLand China and CapitaLand Financial (China Development), said that the fund will ‘invest in prime assets in the high-growth business park sector’.


CCBPF is CapitaLand’s first business park fund in China but its seventh private equity fund in the country.


The combined equity of the seven funds is US$2.7 billion (S$3.7 billion). This is more than half (57.3 per cent) of the US$4.7 billion of total equity raised to date under its private equity fund business.


Source: Business Times

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