Deals

CapitaLand closes $1bn China fund

Raffles City China, which will be the largest private equity vehicle managed by CapitaLand, will develop Raffles City-branded developments in key gateway cities in the country. A second close in December could increase fund commitments to $1.3bn.

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CapitaLand has held a final close on its latest vehicle, Raffles City China.

In a statement, Singapore-based CapitaLand said it had raised S$1.4 billion ($1 billion; €620 million).

Raffles City China will invest in Raffles City-branded developments in key gateway cities in China. It is being seeded with four developments in Shanghai, Beijing, Chengdu and Hangzhou. The total assets in the four cities are values at around $2 billion, the firm said.

CapitaLand owns a 50 percent stake in the fund, while the other 50 percent is owned by institutional investors in Asia, Europe and North America. According to the firm, a second close in December could increase commitments to $1.3 billion. If that were to happen, CapitaLand would reduce its take to 45 percent.

This is CapitaLand’s eighth real estate private equity fund in China, and follows the establishment of its first RMB-denominated real estate private equity fund in June, a joint venture with CITIC Trust called the CITIC CapitaLand Business Park Fund. Currently, CapitaLand has total assets under management of over S$19 billion from its five REITs and 15 private funds.