CapitaLand sets up second China retail development fund

CapitaLand sets up second China retail development fund

By Nicholas Fang
PROPERTY PUSH: Mr Pua says the new fund will invest in mall developments in China. — BT FILE PHOTO

REAL estate giant CapitaLand has set up a second retail development fund, raising about US$600 million (S$917 million) to invest in property projects in fast-growing China.
The mainboard-listed company said yesterday that it has established CapitaRetail China Development Fund II. The fund is now closed.

CapitaLand holds 405 million units, or 45 per cent of the new fund, for which it paid $405 million, the company said in a statement.

The remaining stakes are held by insurance companies, pension funds and corporations.

The company’s CapitaRetail China Development Fund I, which also has a fund size of US$600 million, is already more than 90 per cent committed.

CapitaLand’s two retail development funds invest in retail mall development projects in China.

CapitaLand also has its CapitaRetail China Incubator Fund with a size of US$425 million, which closed in June last year.

This was established to warehouse retail properties with the potential to generate quality income after they are repositioned.

CapitaLand Retail chief executive Pua Seck Guan said yesterday: ‘With the three CapitaLand-sponsored private retail property funds, we have garnered more than US$1.6 billion of dedicated funding to support our long-term retail real estate business expansion plan in China.

‘Through leveraging on our established retail real estate platform, we will continue to strengthen our retail presence in various tiered cities to become a leading retail real estate player in China.’

The company said it has already identified a ’significant pipeline’ of real estate projects in China.
Source : Straits Times - 07 sept 2007

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