CapitaLand Investment Limited (CLI) has announced the final close of its CapitaLand Asia Pacific Credit Programme II (ACP II), securing US$320m (approximately S$403m) in equity commitments. This marks the second regional fund under CLI’s flagship real estate credit series, bolstering its funds under management by approximately US$600m (over S$750m).
The fund’s success comes amid tightening bank lending conditions and a rising demand for flexible capital solutions in the Asia Pacific (APAC) region. Real estate credit, backed by tangible collateral, offers downside protection and has seen increasing institutional interest. APAC fundraising reached US$11.2b between 2020 and 2024, a 40% increase over the previous five years.
Kishore Moorjani, CEO of Alternatives, Private Funds, highlighted the strategic focus of CLI on senior secured, asset-backed investments, stating, “The successful close of ACP II is testament to CLI’s position as a partner of choice in APAC.”
ACP II has attracted a diverse group of investors, including insurers, financial institutions, and family offices, with CLI maintaining a 20% sponsor commitment. Arjun Pandit, Managing Director of Private Funds (Credit), noted the strong investor confidence in CLI’s ability to manage real estate credit with discipline and consistency.
The fund is allocated to five first mortgage loans for logistics, office, and living assets in Sydney, Australia, and the Seoul Metropolitan Area in South Korea. CLI, alongside Wingate, has deployed over S$10b in credit investments across APAC, reinforcing its position as a leading real estate credit player in the region.
