Apr 22 2019Add to Favorites
CapitaLand Limited (“CapitaLand”) has successfully set up its first discretionary real estate equity fund – CapitaLand Asia Partners I (CAP I). Tapping into CapitaLand’s extensive network and strong asset management expertise, CAP I will invest in value-add and transitional office buildings in Asia’s key gateway cities, specifically Singapore, Beijing, Guangzhou, Shanghai, Shenzhen, Osaka and Tokyo.
CapitaLand has raised US$391.3 million (approximately S$528.3 million) for CAP I’s first closing, just nine months after fundraising commenced in July 2018. Capital commitments were received from a diverse group of institutional investors including pension funds, insurance companies and financial institutions from Asia and Europe. The establishment of CAP I comes on the heels of the first closing of CREDO I China, CapitaLand’s maiden discretionary real estate debt fund, in February 2019 as CapitaLand ramps up its discretionary real estate funds business.
Mr Lee Chee Koon, CapitaLand’s President & Group CEO, said: “CAP I is CapitaLand’s first discretionary private equity fund that allows us to make full investment and asset management decisions on behalf of our capital partners. The expansion from our traditional club funds to commingled fund provides CapitaLand with more diverse capital partners, and the speed of CAP I’s first closing demonstrates investors’ confidence in CapitaLand’s ability to deliver strong returns for their investments. Continual high demand for quality commercial properties in Asia’s key gateway cities, coupled with low supply, have made the renewal of ageing commercial assets a compelling investment strategy in these markets.”
Mr Lee added: “Fund management is central to the active capital management strategy of CapitaLand1. With the addition of CAP I and following recent shareholders’ approval of CapitaLand’s acquisition of Ascendas-Singbridge2, CapitaLand is well poised to become one of the top 10 largest real estate investment managers globally3, with an enlarged fund management platform comprising 24 private funds and eight listed real estate investment trusts.”
Mr James Lim, CEO of CapitaLand Investment Management, said: “We are delighted with the successful first closing of CAP I and welcome several new investors to the CapitaLand’s fund management platform. CAP I has a ready pipeline of investment opportunities for capital deployment and we expect to deploy capital in the coming months. We look forward to creating value through sound asset management strategies and delivering robust and attractive risk-adjusted returns for our investors. We are now in advanced discussion with several groups and expect subsequent closings for the fund.”
The Centennial Industrial and Logistics (CIL) launches its latest Enhanced Value fund will follow on from the success of the CIL I and CIL II funds which currently own 6 industrial and logistics properties across Brisbane and Melbourne totalling around $90 million in value.
Dexus Funds Management Limited as responsible entity of Dexus (“Dexus” or the “Group”) confirms today the successful completion of the institutional placement (“Placement”) announced to the Australian Securities Exchange (“ASX”) on 2 May 2019 to partly fund the acquisition of a 75% interest in 80 Collins Street, Melbourne.
At the end of 2017 MP Funds Management (MPFM) co-invested in the acquisition of 9 Hunter Street, a 15,500sqm (approx.) commercial office building which is located almost on the junction of Hunter and George Streets in the, the asset has had the benefit of all of the light rail infrastructure and closing of George Street into the upgraded mall area, together with the multi-billion dollar refurbishment that Brookfield is doing on Wynyard rail way. The Asset was acquired for $202m and has recently been revalued at a value materially higher than the initial purchase price which is pleasing.
Creating an account with MP Report allows you to save articles and update your preferences to filter the content based on your interests and what content you would like to receive from us via our email alerts and newsletter.SIGN UP HERE >