CapitaLand Investment partners AIA Life Insurance in RMB2.4 billion joint venture to recapitalise Capital Square Beijing

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Latest joint venture demonstrates CLI’s strong domestic capital partnerships and ongoing discipline in capital management

CapitaLand Investment Limited (CLI) has formed a RMB2.4 billion (S$447 million[1]) joint venture with AIA Life Insurance (AIA), to recapitalise Capital Square Beijing, a Grade A office building in Beijing, China. Under this partnership, CLI will divest a 95% stake in Capital Square Beijing to AIA and hold the remaining 5% stake. CLI will provide asset management services for the joint venture, which will contribute to its recurring fee income.

Located in the Central Business District (CBD) in Chaoyang District, Capital Square Beijing was acquired in October 2022 through a court auction. Following the acquisition, an asset enhancement initiative was undertaken to upgrade its facilities, revitalise its tenant mix and improve operational efficiencies, leveraging CLI’s extensive tenant network and deep market knowledge to optimise the property’s performance. The property has a total gross floor area of 44,759 square metres (above ground).

Mr Puah Tze Shyang, CEO of CLI (China), said: “Despite a challenging fundraising and operating environment, we have successfully brought in AIA as a joint venture partner in Capital Square Beijing as part of our disciplined capital management. CLI’s joint venture with AIA demonstrates the trust that capital partners have in our on-the-ground expertise to unlock value from our assets and deliver strong returns. This is the second time we are partnering with AIA in China, following their investment in one of our RMB funds in 2022. We remain focused on being asset light and capital efficient while continuing to scale up our fund management business.”

Over the past year, CLI has recycled more than RMB3 billion (S$559 million) in capital in China. In 2023, CLI divested a partial stake in a high-quality logistics development in Foshan, Guangdong to the CapitaLand China Opportunistic Partners Programme which was established in February 2023 to invest in special situation opportunities. In January 2024, CLI also divested CapitaMall Shuangjing in Beijing via the CLI-sponsored CapitaLand China Trust, Singapore’s largest China-focused real estate investment trust.

CLI in China

CLI has been operating for 30 years in China, one of its core markets. It has more than 200 properties across over 40 cities with total assets under management of S$45 billion[2] in the country. CLI’s resilient and well-diversified portfolio in China includes office, retail, lodging, business parks, logistics and data centres in five core Tier one and two city clusters[3]. 

1. Based on an exchange rate of RMB1 to S$0.186350, unless stated otherwise.
2. As at 30 September 2023.
3. CLI’s five core city clusters in China to focus its growth are Beijing / Tianjin; Shanghai / Hangzhou / Suzhou / Ningbo; Guangzhou / Shenzhen; Chengdu / Chongqing / Xi’an and Wuhan.

Release ID: 89120211

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This content is reviewed by our News Editor, WL Tan.

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