CapitaLand Investment Bets Big on China with Landmark C-Reit Launch

Image Source : The Straits Times

CapitaLand Investment is making a strategic move in China’s real estate market with the launch of its first onshore real estate investment trust, CapitaLand Commercial C-Reit. The initiative underscores the company’s long-term commitment to China, where it has built a strong foundation over three decades.

The newly proposed C-Reit will be seeded with two major retail assets—CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha—valued at 2.8 billion yuan. The listing, once approved, will mark the first international-sponsored retail C-Reit in China, positioning CapitaLand Investment as a key player in the country’s domestic capital market.

Group CEO Lee Chee Koon emphasized that the company aims to tap into China’s vast pool of domestic investors, who are actively seeking opportunities to deploy capital amid restrictions on yuan movement. By leveraging its local teams and investment expertise, CapitaLand Investment plans to structure deals that attract quality investors while ensuring strong asset management.

The company has been refining its business model to focus on asset management rather than traditional property development. This shift allows CapitaLand Investment to navigate China’s competitive real estate landscape more effectively, ensuring sustainable growth and higher returns for stakeholders.

Sources: Business Times, CapitaLand Newsroom, DBS Insights, Shanghai Stock Exchange News