CapitaLand Investment Limited (CLI) has successfully listed CapitaLand Commercial C-REIT (CLCR) on the Shanghai Stock Exchange, marking it as China’s first international-sponsored retail C-REIT. Trading commenced at RMB6.84 per unit, a 19.6% increase from its initial public offering (IPO) price of RMB5.718. This milestone strengthens CLI’s position as Asia Pacific’s largest REIT manager by market capitalisation and expands its platform into China.
CLCR’s IPO raised RMB2.29b by issuing 400 million units, surpassing initial estimates by 7%. The forecast distribution yield is 4.40% for FY 2025 and 4.53% for FY 2026. The listing is part of CLI’s broader strategy to recycle capital and focus on asset-light business models, with CEO Puah Tze Shyang highlighting the significance of this achievement for CLI and the C-REIT market.
The IPO saw strong demand, with a record-breaking offline institutional subscription rate, primarily from insurance companies and strategic investors. CLI, CapitaLand China Trust (CLCT), and CapitaLand Development (CLD) hold a 20% interest in the IPO units. CLCT and CLD have contributed CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha as seed assets.
CLCR’s portfolio, valued at approximately RMB2.6b, includes two retail assets with a 96% occupancy rate. CLI plans to leverage its operational expertise to enhance these assets’ value. Additionally, CLI’s RMB Master Fund has closed its first sub-fund and plans to launch another focused on retail assets later this year, continuing its capital recycling strategy.
