Dutch investor Bouwinvest Real Estate has made a $75-million commitment to CapitaLand’s (CLI) private lodging fund. In a separate development, CLI also announced raising 1 billion yuan (about $139 million) from its inaugural sustainability-linked panda bond.
Bouwinvest makes $75m commitment to CapitaLand’s fund
Dutch investor Bouwinvest Real Estate has made a $75-million commitment to CapitaLand’s (CLI) private lodging fund, according to a statement on Tuesday.
CapitaLand Ascott Residence Asia Fund II, which hit its first close last month, is a value-add realty fund that focuses on well-located but ageing or underperforming properties across the hospitality, offices, or residential sectors in major cities, such as Tokyo, Osaka, Singapore or Seoul, the statement said.
Similar to its precursor fund Ascott Serviced Residence Global Fund, CapitaLand’s latest vintage for Asian lodging assets has a target of $600 million, per a statement last month. It had already started making investments in co-living properties in Japan and Singapore.
On behalf of pension fund clients, Amsterdam-based Bouwinvest manages 15.1 billion euros in assets across funds dedicated to Dutch, European, North American and Asia Pacific properties.
CapitaLand raises $139m from panda bond issuance
CLI also announced raising 1 billion yuan (about $139 million) from its inaugural sustainability-linked panda bond.
The bond, which has a three-year tenure and a 3.5% annual fixed coupon rate, saw strong interest from institutional investors. The bonds were oversubscribed by 1.65 times, CLI said.
The panda bond is tied to CLI’s target of lowering its energy consumption by at least 6% at its properties in China. This goal is a crucial part of CLI’s 2030 Sustainability Master Plan, which aims for Net Zero carbon emissions by 2050 and a 46% reduction in carbon emissions by 2030.
The proceeds from the bond will be directed towards refinancing existing loans under its 2 billion yuan Debt Issuance Programme.
CLI China CEO Puah Tze Shyang said the panda bond enables the firm to diversify its capital sources and increases its financial flexibility.
