CITIC holds $225m first close of fourth property fund
CITIC Capital has held a first close on its fourth Chinese real estate vehicle, CITIC Capital China Retail Properties Investment Fund, at $225 million.
The fund, which will invest in the retail sector in second- and third-tier Chinese cities, has a target of $600 million. It has already deployed a small portion of its capital in the ID Mall in Changsha in Hunan province, according to Reuters.
Senior Managing Director and Head of CITIC Capital's Real Estate Group Stanley Ching said the mall was bought from a local investor but hasn't been completed, "so we are completing it."
The vehicle intends to occassionally co-invest with other private equity players, while its main focus will be retail properties. Its LPs include institutional investors from Europe and the US, such as Townsend Group, as well as from Asia.
CITIC's first property fund provided funding to distressed assets, fund II invested in residential projects and the third vehicle was more generalist.
In terms of CITIC's broader private equity activity, Citic Private Equity Funds Management, the PE unit of Citic Securities, launched its third private equity fund in September, aiming to raise RMB12 billion. It is expected to target industries including financial services, retail, pharmaceuticals, manufacturing, energy and materials. And in July, news surfaced that CITIC Private Equity sought to launch RMB5 billion mezzanine fund, though details of the vehicle have not been released.
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