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Capitaland sets up $600m China fund

Southeast Asia’s largest developer has set up its second Chinese property development fund, targeting retail properties.

Singapore property developer CapitaLand has set up its second Chinese property development fund, having raised S$900 million ($600 million, €439 million).
CapitaRetail China Development Fund II will invest in retail mall development projects in China. Capitaland will hold a 45 percent stake in the fund, and the remainder will be held by LPs.

“We have garnered more than $1.6 billion of dedicated funding to support our long-term retail real-estate business expansion plan in China,” the firm said in a statement.

This is CapitaLand’s second fund targeted at Chinese shopping mall investments. The first fund, CapitaRetail China I, also has a size of $600 million. That fund is now more than 90 percent committed, according to the firm. Capitaland has also sponsored the S$638 million ($425 million) CapitaRetail China Incubator Fund for warehouse retail properties.

CapitaLand, which also has a $425 million fund that invests in warehouse retail properties, earns up to 80 percent of its profit outside of its Singapore base, according to the firm.