CapitaLand Investment Limited (CLI) has announced the initial close of its sixth onshore renminbi (RMB) fund, the China Business Park RMB Fund III (CBPF III), securing $222 million (RMB 1.2 billion) in equity. This development is expected to increase CLI’s funds under management (FUM) by $370 million (RMB 2 billion) once the fund is fully deployed.
CBPF III, a closed-end fund, aims to invest in business parks across China and has secured a major institutional investor as its anchor. CLI will retain a sponsor stake in the fund, aligning its interests with those of its investors and partners.
To kick-start the fund’s operations, CLI will recapitalize its asset, Ascendas iHub Suzhou, by transferring it as a seed asset to CBPF III for $259 million (RMB 1.4 billion). CLI will continue to manage the property, contributing to its recurring income.
Ascendas iHub Suzhou, which has been operational since 2011, is located in the Dushu Lake Science & Education Innovation District of the Suzhou Industrial Park. The property consists of four mid-rise and eleven low-rise buildings, with a total area of 170,800 square meters. It is equipped with various amenities and is conveniently situated near Suzhou Metro Line 2.
The facility holds a Leadership in Energy and Environmental Design (LEED) Gold certification, indicating its adherence to sustainable building practices.
This fund is part of CLI’s strategy to expand its investment footprint in China’s business park sector, capitalizing on the growing demand for high-quality business infrastructure in key regions across the country.
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