[SINGAPORE] CapitaLand Investment (CLI) is moving to list its first real estate investment trust (Reit) in China with two major malls valued at 2.8 billion yuan (S$499 million).
The listing on the Shanghai Stock Exchange will be the first for a retail Reit by an international company.
CLI said CapitaLand Commercial C-Reit (CLCR) will be seeded with the mature assets CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha, with a total gross floor area of 168,405 sq m. The malls have an aggregate committed occupancy rate of 97 per cent.
Currently, both malls are owned within the CapitaLand Group’s portfolio, with the Guangzhou property jointly held by CLI and the group’s privately-held CapitaLand Development (CLD), while the Changsha asset is owned by CapitaLand China Trust (CLCT). The three parties will hold at least 20 per cent of the new Reit, with CLI as sponsor and asset manager.
In a statement on Thursday (Apr 17), CLI China chief executive officer Puah Tze Shyang said: “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 strengthen CLI’s listed funds platform, broaden its access to perpetual domestic capital, and grow assets under management and recurring fee income, Puah added.
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The listing will also allow Singapore-listed CLCT to diversify its income and enhance its portfolio quality. Gerry Chan, CEO of CLCT’s manager, said: “This aligns with (CLCT’s) 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.”
He added: “CLCT’s investment mandate covers the Greater China region, including Hong Kong and Macau, whereas CLCR will concentrate exclusively on mainland China.”
CLI currently manages S$18 billion worth of retail assets across 43 properties in China. It said it will continue to offer a quality pipeline of potential assets to support the growth of the new Reit and CLCT.
The proposed listing is subject to the approvals of the China Securities Regulatory Commission, the Shanghai exchange and CLCT’s independent unitholders.
Shares of CapitaLand Investment were trading S$0.07 higher or 2.8 per cent at S$2.61 by the mid-day break.
