CapitaLand to launch first RMB fund in Q4

The company has obtained a private equity fund manager status in China.

CapitaLand will be launching its first Renminbi-denominated capital raising after it registered as a private equity fund manager (PEFM) with the Asset Management Association of China.

It will also be providing fund management services for RMB funds in China.

“China is CapitaLand’s largest core market and we hold a long-term view of our business in the country,” Lee Chee Koon, Group CEO, CapitaLand Group said.

“As China develops into one of the world’s largest asset management markets in the next few years, we see tremendous potential to tap the market liquidity for scaling our investment management platform.”

The registration as a PEFM in China is also expected to enhance CapitaLand’s capability in forging capital partnerships with domestic institutional investors in China.

CapitaLand targets to launch its first RMB-denominated fund product in 4Q 2021. This is in line with China’s focus on new economy drivers under the country’s 14th Five-Year Plan.

The company seeks to capture investment opportunities in new economy assets such as business parks, logistics and data centres, anchored by an optimal combination of value creation opportunities (opportunistic/value-added) and core-plus assets.

CapitaLand plans to grow its exposure to new economy assets in China to S$5b over the next few years from the S$1.5b, as of end-2020. In line with this investment strategy, CapitaLand announced in April 2021 that it is investing RMB3.66b (approximately, S$759b) to acquire its first hyperscale data centre campus in Shanghai, China.