CapitaLand, on Nov 16, announced that it aims to grow its China exposure in new economy assets to $5 billion from the current $1.5 billion.
The target is in line with CapitaLand’s strategy to ride on China’s economic transformation focusing on technology, services and domestic consumption, it says.
Investments will include business parks, logistics and data centres.
As part of CapitaLand’s active asset recycling strategy, CapitaLand Retail China Trust (CRCT) has been designated as the group’s dedicated REIT platform for non-lodging assets in China.
CRCT, as one of CapitaLand’s investing vehicles, will also continue to explore opportunities from third parties and acquire from the market.
Over time, CRCT plans to reinforce its position as Singapore’s largest China-focused REIT with a target portfolio mix of 40% in integrated developments, 30% in retail and 30% in new economy.
On Nov 6, CapitaLand announced that it has entered into agreements, through its associates, to divest its share of interest to the companies which hold five business park properties and Rock Square mall in China to CRCT.
See: CapitaLand to divest interest in 5 business park properties and Rock Square mall to CapitaLand Retail China Trust
“Even before the pandemic, CapitaLand has been keen to broaden the Group’s exposure to new economy assets as we seek to create a balanced and diversified portfolio across asset classes and geographies,” says Lucas Loh, president of CapitaLand Group’s China arm.
“In China, we continue to see many compelling opportunities in the new economy sector, whose prospects have been boosted by favourable government policies and robust demand. As CapitaLand continues to recycle our assets, part of the unlocked capital will be redeployed to pursue business parks and other new economy asset opportunities, which will form the pipeline for future recycling,” he adds.
Shares in CapitaLand closed 2 cents lower or 0.7% down at $2.84 on Nov 13.
