CapitaLand raises S$2 bil to establish third Raffles City China private equity vehicle

SINGAPORE (Oct 25): CapitaLand has announced the establishment of its third integrated development private investment vehicle in China, Raffles City China Investment Partners III (RCCIP III) — which fully closed at US$1.5 billion (RM6.25 billion) and has a life of eight years.

Managed by the group’s subsidiary CapitaLand Fund Management, the vehicle will invest in prime integrated developments in gateway cities in China.

In a Tuesday filing, CapitaLand says it will subscribe 41.7% sponsor stake in RCCIP III.

The remaining interests will be held by new and existing major investors from Asia, North America, and the Middle East.

With the latest addition of RCCIP III, CapitaLand now manages 16 real estate private platforms and five real estate investment trusts with assets under management (AUM) worth over S$45 billion (RM134.83 billion). The group also manages a US$1.18 billion Raffles City China Fund that is invested in five Raffles City developments in China.

“Following our successful partnership with Qatar Investment Authority in the serviced residence sector, RCCIP III is set to be another excellent example of how we are proactively working with strong capital partners to build up scale, while enhancing the group’s returns on equity through earning fee income,” says Lim Ming Yan, president and group CEO of CapitaLand.

According to CapitaLand’s group CFO, Arthur Lang, RCCIP III also brings the group closer to its goal of raising funds with a total AUM of up to S$10 billion by 2020.

Shares of CapitaLand closed flat at S$3.17 on Monday. — theedgemarkets.com.sg