Photo: CapitaLand
CapitaLand Investment to launch first retail REIT in China’s SSE with RMB2.8B of assets
SINGAPORE/SHANGHAI: CapitaLand Investment (CLI) announced that it has applied for the registration and listing of its first real estate investment trust (REIT) in China, with two malls worth RMB2.8 billion (S$499 million) to be included, according to a statement it released on Thursday (April 17). The REIT, called CapitaLand Commercial C-REIT (CLCR), will be listed on the Shanghai Stock Exchange (SSE) and will be the first retail REIT in China by a Singapore-based company.
CLI said the REIT will include CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha. Together, the two malls cover 168,405 square metres (sq m) of gross floor area and have an aggregate committed occupancy rate of 97%. Currently, CapitaMall SKY+ is jointly owned by CLI and CapitaLand Development (CLD), while CapitaMall Yuhuating is owned by CapitaLand China Trust (CLCT). CLI, CLCT and CLD will hold at least 20% of the new REIT. CLI will act as the sponsor and asset manager.
CLI’s China CEO, Puah Tze Shyang, said, “The proposed listing of CLCR is in line with CLI’s strategy to pursue asset-light growth and expand in China by tapping domestic capital. It will further strengthen CLI’s listed funds platform, broaden our access to perpetual domestic capital, and enable us to grow our assets under management and recurring fee income. This move also complements CLCT, our Singapore-listed fund for international investors looking to invest in China, allowing us to attract diverse capital sources that meet various investor requirements.”
CLCT’s CEO, Gerry Chan, said, “CLCR offers a strategic opportunity for CLCT to enter the expanding C-REIT market. It provides a platform to unlock value from our mature assets, bolstering our financial flexibility to pursue income diversification and enhance portfolio quality. This aligns with our growth strategy as a diversified, multi-asset class REIT, anchored by a broad portfolio of retail properties, business parks, and logistics parks, while CLCR will focus on retail assets. CLCT’s investment mandate covers the Greater China region, including Hong Kong and Macau, whereas CLCR will concentrate exclusively on Mainland China.”
CLI manages about S$18 billion in retail assets across 43 operating properties in 18 cities throughout China.
The listing of CLCR is still waiting for approval from the China Securities Regulatory Commission (CSRC), SSE, and CLCT’s independent unitholders. /TISG
