-- CapitaLand Investment Limited (CLI), a leading global real asset manager, today announced that it has applied for the registration and listing of its first real estate investment trust in China, to be named CapitaLand Commercial C-REIT (CLCR), with the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE). The listing would mark the first international-sponsored retail C-REIT and the first such C-REIT by a Singapore-based company once approved. This would increase funds under management of CLI’s listed funds platform, strengthening its leading position as Asia Pacific’s largest REIT sponsor-manager by market capitalisation.
CapitaLand Commercial C-REIT’s initial portfolio will comprise CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha.
CLCR will invest in operating retail assets in China, benefiting from the Chinese government’s policies to stimulate domestic consumption. It will be seeded with two high-quality mature assets, CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha. The properties have a combined value of approximately RMB2.8 billion and a total gross floor area of 168,405 square metres (sqm) with an aggregate committed occupancy of 97%. CapitaMall SKY+ is currently jointly owned by CLI and CapitaLand Development (CLD) while CapitaMall Yuhuating is under CapitaLand China Trust (CLCT).
As strategic investors, CLI, CLCT and CLD will collectively hold at least a 20% interest in CLCR. As the sponsor as well as the asset manager of CLCR, CLI will continue to operate CapitaMall SKY+ and CapitaMall Yuhuating post-launch. Additionally, CLI will support the growth of CLCR and CLCT through its ability to offer a quality pipeline of potential assets. CLI manages 43 operational retail properties across 18 cities with total retail assets under management of approximately S$18 billion in China.
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. With our 30 years of experience operating in China and a strong pipeline of quality retail assets, both CLCT and CLCR will be well-positioned to seize opportunities in this dynamic market and provide unitholders with sustainable returns.
- Mr Puah Tze Shyang, CEO of CLI China -
Mr Puah Tze Shyang, CEO of CLI China
Mr Gerry Chan, CEO of CapitaLand China Trust Management Limited, the manager of CLCT
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. With nearly two decades of proven track record, CLCT is well-placed to leverage this new platform and advance our strategy of building a balanced portfolio that capitalises on China’s fast-evolving consumption- and innovation-led economy.
- Mr Gerry Chan, CEO of CapitaLand China Trust Management Limited, the manager of CLCT -
The proposed CLCR creates a complete cycle that covers investment, development, and management in China’s commercial real estate market, thereby improving the liquidity of commercial assets. It provides a capitalisation channel for CLD's mature and high-quality stable assets in China, revitalising funds effectively. This affirms CLD's long-term commitment to sustainable development in China.
- Mr Ben Lee, CEO of CLD China -
Mr Ben Lee, CEO of CLD China
The proposed listing of CLCR is conditional upon the approval of CLCT’s independent unitholders at an extraordinary general meeting to be convened at a later date as well as regulatory approvals from CSRC and SSE.
About the properties
CapitaMall SKY+, a lifestyle hub located in Baiyun Central Business District in Guangzhou, serves a dense catchment of residential communities and office buildings. Directly connected to the Baiyun Park subway station on Line 2, the property is uniquely surrounded by two parks, offering a harmonious blend of nature and urban conveniences. A popular spot for social gatherings, the property boasts a trendy tenant mix that caters to shoppers’ varied needs, including cultural experiences, quality education, and a healthy lifestyle.
CapitaMall Yuhuating, an established community mall located in Yuhua District in Changsha, serves a high concentration of residential and office buildings. The property is conveniently accessible via two adjacent subway stations on Line 1 and Line 4 and will be directly connected to the future Yuhuating subway station on Line 7 (operational in 2027). In March 2023, CapitaMall Yuhuating completed an asset enhancement initiative, and was repositioned to include more lifestyle offerings and experiences to better cater to the local population.
Please refer to the Annex for more details of the properties.
CapitaMall SKY+
CapitaMall Yuhuating
Annex
Note
1) As at 31 December 2024. Includes Japan Hotel REIT (JHR) through CLI’s 40% stake in SC Capital Partners Group, the sponsor of JHR.
Release ID: 89157888
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