CapitaLand sets up $215m housing PE fund in China
Singapore developer CapitaLand has closed its first value housing private equity fund, which will invest in affordable residential developments in China. It has a corpus of S$264 million ($215 million).
CapitaLand China Value Housing Fund (CCVHF) has a lifespan of five years. It has already made seed investments in two value housing projects: The Rivervale in Guangzhou and The Floravale in Shanghai.
CapitaValue Homes, CapitaLand's wholly-owned subsidiary, has a 58.6% share of the fund, worth $126 million, while the remaining contributions came from corporate and institutional investors.
"The value housing segment in China continues to see strong underlying demand driven by rapid urbanization, growing middle class and escalating home prices," commented Chen Lian Pang, CEO of CapitaValue Homes. "China is currently 51% urbanized and seven million new households are expected to form every year. Value housing will meet the needs and affordability of many young and first-time homebuyers."
CapitaLand, a Temasek Holdings portfolio company with 58 shopping malls in China, already has 11 other real estate PE funds in the country. It has around S$36.1 billion of assets under management.
One of CapitaLand's listed entities, CapitaMalls Asia, recently announced the establishment of the China Development Fund III, with a corpus of $1 billion. The vehicle, which has an eight-year lifespan, will invest in the development of shopping malls and properties predominantly used for retail purposes nationwide.
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