CapitaLand Investment Limited (CLI), a prominent global real asset manager, has announced the establishment of its first onshore master fund in China, the CLI RMB Master Fund, with an equity commitment of RMB5 billion (S$921m). This strategic move involves a partnership with a major domestic insurance company, which will hold a majority stake in the fund, aligning with CLI’s asset-light strategy to expand its funds under management (FUM). The master fund is projected to contribute RMB20 billion (S$3.7b) to CLI’s FUM upon full deployment.
The master fund will channel investments into sub-funds targeting high-quality, income-generating assets with long-term growth potential. These sub-funds will focus on business parks, retail, rental housing, and serviced residences across Tier one and top Tier two cities. Future investments may also explore sectors such as data centres, logistics parks, and offices.
Puah Tze Shyang, CEO of CLI China, highlighted the significance of this development, stating, “Leveraging our over 30 years of experience in China and deep on-the-ground expertise, our first master fund in China demonstrates CLI’s capabilities in structuring and launching a diversified suite of RMB funds tailored to domestic investors’ needs.”
Kara Wang, Chief Investment Officer of CLI China, added, “CLI’s strong balance sheet enables us to co-invest in our private funds, aligning our interests with those of our capital partners.”
CLI’s portfolio in China spans over 300 properties across more than 40 cities, including office, retail, lodging, and business parks. This initiative follows CLI’s recent application to list its first real estate investment trust in China, CapitaLand Commercial C-REIT, further broadening its access to domestic capital and enhancing its recurring fee income.
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