CapitaLand sets biggest fund for China 

The Raffles City China Investment Partners III (RCCIP III), which has a life of eight years, is the company’s largest private capital raise.
CapitaLand also manages a US$1.18-billion Raffles City China Fund that has invested in five developments in China (Raffles City Shanghai, Raffles City Beijing, Raffles City Chengdu, Raffles City Ningbo and Raffles City Hangzhou), and a vehicle worth 1.03 billion Singapore dollars (Bt25.8 billion) in a Raffles City project in Changning district, Shanghai.
CapitaLand said it would subscribe for a 41.7-per-cent sponsor stake in RCCIP III, while the remaining interests will be held by major investors from Asia, North America and the Middle East, including new and existing investors.
Separately, the Canada Pension Plan Investment Board (CPPIB) announced on Tuesday yesterday an investment of US$375 million in RCCIP III, equivalent to a 25-per-cent stake in the investment vehicle.
Jimmy Phua, CPPIB managing director, head of real-estate investments in Asia, said: “Investing in CapitaLand’s new China investment vehicle gives CPPIB the opportunity to expand on our long-term strategy of investing in high-quality commercial real estate in China to deliver solid risk-adjusted returns over the long term.”
RCCIP III will be managed by CapitaLand Fund Management, an indirect wholly owned subsidiary of CapitaLand.
Lim Ming Yan, company president and group chief executive officer, said: “CapitaLand’s strong developer-owner-operator capabilities will enable us to deliver better risk-adjusted returns for investors. This, together with our ability to|co-invest with our capital partners, aligns us with reputable investors with longer investment horizons such as sovereign wealth funds, |pension funds and insurance companies.”
Lim said the investment platforms enhanced the group’s returns on equity with fee income. Last year, CapitaLand derived S$202.1 million of fees from non-listed real estate and REIT (real estate investment trust) management activities, about 4 per cent of the group|revenue, he said.
Group chief financial officer Arthur Lang, who also oversees the investment-management business, said CapitaLand now managed |16 real-estate private platforms and five REITs with assets under |management worth more than S$45 billion.
“RCCIP III brings us closer towards our goal of raising funds with a total AUM of up to S$10 billion by 2020,” he said.