CapitaLand seeks to grow China ‘new economy' asset exposure to $5b

It has designated CRCT as its REIT platform for non-lodging assets in China.

CapitaLand plans to redeploy part of the capital from its recent asset recycling to new economy assets—business parks, logistics, and data centres—and grow its China exposure in the sector to $5b over the next few years, the group said in a press release.

Currently, CapitaLand has a $1.5b exposure in new economy assets.

Investments will include business parks, logistics and data centres, according to CapitaLand, where tenants typically hail from new economy sectors that enjoy robust fundamentals and a supportive regulatory environment.

As part of CapitaLand’s recycling, CapitaLand Retail China Trust (CRCT) has been designated as the group’s dedicated real estate investment trust (REIT) platform for non-lodging assets in China.

Over time, CapitaLand said that CRCT will reinforce its position as Singapore’s largest China-focused REIT with a target portfolio mix of 40% in integrated developments, 30% in retail and 30% in new economy.

In line with these targets, CapitaLand, through its associates, has entered into agreements to divest its share of interest in the companies which hold five business park properties and Rock Square mall in Chinato CRCT.