CapitaLand Investment to institute two private funds in Japan, South Korea

This is set to grow funds under management by $688m.

CapitaLand Investment (CLI) has established two private funds in Japan and South Korea which is expected to grow its funds under management (FUM) by $688m.  

The Japan-based private fund acquired two existing commercial assets; whilst the South Korea-based fund, two operating cold storage logistics properties. 

CLI’s private fund in Japan was fully deployed through the acquisition of CLI’s interests in two commercial assets in Japan with FUM of about $537.7m (JPY 44.1b). The group maintains a 4.98% stake in the fund, whilst the remaining stake is held by local institutional partners such as Keikyu Corporation, Taisei Corporation, Fuyo General Lease, and Odakyu Real Estate. Also included in the underlying assets are a 50% stake in Yokohama Blue and a 20% stake in Shinjuku Front Tower. The other 50% stake in Yokohama Blue has also been acquired by another CLI-managed fund, with the group remaining as asset manager of these two office buildings.

In South Korea, the private fund was structured through a joint venture with PGIM Real Estate. CLI also has a 5% stake in the fund, whilst the rest is held by PGIM Real Estate. The fund is deployed through the acquisition of two operating cold storage properties with FUM of around $150.3m (KRW 127.1b). These two properties, Foodist Icheon Center and Foodist Gyeongin Center, are situated near Soul and are on long-term master leases with Foodist. 

“CLI’s establishment of the two new private funds shortly after its public listing demonstrates capital partners’ confidence in us as an asset-light, capital-efficient global real estate investment manager. Fund management and capital recycling are two of our key growth strategies. With the two new private funds, we have launched a total of seven new funds with more than S$1.4 billion of new equity raised from external parties this year. As part of our disciplined capital recycling efforts, we have divested two commercial assets to our private funds, further growing our FUM,” said Lee Chee Koon, Group CEO, CLI.