CapitaMalls Asia raises $1b for China Development Fund III
CapitaMalls Asia, the shopping malls arm of Temasek-owned CapitaLand, has announced the establishment of its China Development Fund III with a fund size of $1 billion. The vehicle, with a fund life of eight years, will invest in the development of shopping malls and properties predominantly used for retail purposes across the country.
CapitaMalls Asia, the Singapore- and Hong Kong-listed mall developer, holds a 50% stake in the fund, while the remaining stakes are held by institutional investors from Asia and North America, the company said in a press release.
The fund will own three of CapitaMalls Asia's shopping malls that are currently under development as seed assets, including CapitaMall Tianfu and CapitaMall Meilicheng in Chengdu; and the Luwan integrated development project comprising an eight-storey shopping mall and a 29-storey office tower in Shanghai.
China Development Fund III is the largest private equity fund CapitaMalls Asia has established to date. While China increasingly focuses on domestic consumption as a key economic driver, Beng-chee Lim, CEO of CapitaMalls Asia, said that the company remains confident in the Chinese retail market, which is expected to grow between 16% and 17% in 2012.
"Given the potential of this vast market, to accelerate the growth of our network in China, we need to work with reputable capital partners to increase our investment capacity and expand our competitive footprint," he said.
CapitaMalls Asia has an integrated shopping mall business model comprising of retail real estate investment, development, mall operations, asset management and fund management capabilities. It has interests in and manages a pan-Asian portfolio of 98 shopping malls across 51 cities in Singapore, China, Malaysia, Japan and India, with a total property value of approximately HK$177.2 billion ($22.8 billion).
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