CapitaLand targets S$10bn FUM by 2020

The Singapore-listed property group has raised $300m for its debut Vietnam fund after securing $1.5bn for its third China development fund to move closer to its lofty private funds under management goal.

CapitaLand, the Singapore-listed property developer and investment manager, has set an ambitious target of increasing its funds under management by S$10 billion ($7.34 billion; €6.23 billion) by 2020.  CapitaLand currently has around $48 billion, approximately equally split between its private funds and REIT businesses.

In keeping, the firm has closed its $300 million debut Vietnam-focused commercial property fund after closing its largest private equity real estate partnership last year, the $1.5 billion Raffles City China Investment Partners III, which is invested in prime integrated developments in gateway cities in China.

The fund closings brings the firm a step closer to its goal of raising S$10 billion by 2020, said Lim Ming Yan, president & group chief executive of CapitaLand. “As we work with strong capital partners to scale up, we continue to enhance the group's returns on equity by generating fee income.” 

CapitaLand's maiden Vietnam fund, CapitaLand Vietnam Commercial Fund I, will invest in and develop Grade A commercial real estate in Vietnam and has a life span of eight years.

In January CapitaLand made its first foray into Vietnam commercial real estate through the acquisition and development of an office tower in the Central Business District of Ho Chi Minh City, which is due for completion in 2020.

“CapitaLand is positive about the growth trajectory of Vietnam and foresee that this trend will continue for at least the next 10 years,” said Lim. “Besides the growing demand for residential properties with urbanization, we also see strong potential upside in the commercial real estate sector given the mismatch between demand and supply of quality office space.”

Vietnam is the third largest market for CapitaLand in Southeast Asia, after Singapore and Malaysia. CapitaLand has nine residential developments, 22 serviced residences with over 4,700 units and one international Grade A office development across six cities in Vietnam.

CapitaLand is an owner and manager of a global portfolio worth more than S$80 billion as at 30 June 2017, comprising integrated developments, shopping malls, serviced residences, offices, homes, real estate investment trusts (REITs) and funds.