CapitaLand Investment secures initial $222m for China business park fund

CBPF III is expected to boost CLI’s funds under management by $370M when fully deployed.

CapitaLand Investment Limited (CLI) has announced the initial close of its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), with $222m (RMB1.2b) in equity. 

The fund will focus on investing in business parks across China.

The closed-end fund has secured a major institutional investor as its anchor. When fully deployed, CBPF III is expected to increase CLI’s funds under management (FUM) by $370m (RMB2b). CLI will maintain a sponsor stake in the fund to align with investors and partners.

CLI will recapitalise Ascendas iHub Suzhou by transferring it as a seed asset to CBPF III for $259m (RMB1.4b). CLI will continue to manage the property, contributing to its recurring income.

Ascendas iHub Suzhou, located in the Dushu Lake Science & Education Innovation District of Suzhou Industrial Park, has been operational since 2011. 

The property, which includes four mid-rise and 11 low-rise buildings totaling 170,800 square meters, is well-equipped with amenities and near Suzhou Metro Line 2. It holds a Leadership in Energy and Environmental Design (LEED) Gold certification.