Capitaland Investment Establishes Rmb5 Billion Onshore Master Fund China Major Domestic Insurer

CLI Launches First Onshore Master Fund in ChinaCapitaLand Investment Limited (CLI) has made a significant move to expand its presence in China with the establishment of its first onshore master fund, the CLI RMB Master Fund. With a total equity commitment of RMB5 billion ($921 million), CLI has secured a major domestic insurance company as a majority stakeholder, in line with its asset-light strategy to grow funds under management (FUM). The master fund is expected to contribute RMB20 billion to CLI’s FUM upon full deployment. The master fund will invest in a variety of sub-funds, seeking out high-quality, income-producing assets with potential for long-term growth. These sub-funds will focus on acquiring business parks, retail spaces, rental housing, and serviced residences across Tier one and top Tier two cities. Future sub-funds may also invest in special opportunities in other sectors such as data centres, logistics parks, and offices. According to Puah Tze Shyang, Chief Executive Officer of CLI China, the company boasts over three decades of deep expertise and experience within the Chinese market. He goes on to say “Our first master fund in China demonstrates CLI’s capabilities in structuring and launching a diversified suite of RMB funds tailored to domestic investors’ needs.” Puah continues, “This allows us to tap into a rising trend of insurance companies increasing their capital allocation to real estate in China, providing them opportunities to invest in a diversified and resilient portfolio of stabilized assets with core returns.” He also notes that with a major domestic insurance company as a co-investor in the master fund, CLI is well-positioned to attract other insurance firms to invest in the sub-funds, rapidly expanding their domestic investor base. Puah states, “With this new fund, we have successfully raised RMB54 billion across seven RMB funds since 2021, demonstrating the strong momentum of our domestic-for-domestic fund strategy to grow FUM and recurring fee income.” In April, CLI announced its plans to list its first real estate investment trust in China, named CapitaLand Commercial C-REIT (CLCR). This move will help broaden CLI’s access to domestic capital and further grow their recurring fee income. The two seed assets for CLCR will be CapitaMall Yuhuating owned by CapitaLand China Trust and CapitaMall Sky+ owned by CLI and CapitaLand Development. This groundbreaking announcement marks a significant milestone for CLI and showcases their dedication to expanding their presence in the Chinese market.

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