<article>Singapore-based property developer <a href="https://www.dealstreetasia.com/?s=CapitaLand%20Limited">CapitaLand Limited</a> has raised $556 million for the first close of its debut China-focused discretionary real estate debt fund, <a href="https://www.dealstreetasia.com/?s=CREDO%20I China">CREDO I China.</a></article>

Singapore-based property developer <a href="https://www.dealstreetasia.com/?s=CapitaLand%20Limited">CapitaLand Limited</a> has raised $556 million for the first close of its debut China-focused discretionary real estate debt fund, <a href="https://www.dealstreetasia.com/?s=CREDO%20I China">CREDO I China.</a>
The amount raised for the first close represents over 70 per cent of the $750-million target. CapitaLand will hold a 10 per cent stake in the fund, while major institutional investors are expected to make commitments later this year.
In a statement, CapitaLand said CREDO I China will invest in offshore USD-denominated subordinated instruments for real estate in China’s first- and second-tier cities.
The fund, which is set to be one of China’s largest real estate debt funds, will focus on loans and securities of high-quality real estate covering commercial, retail, residential, logistics and industrial properties.
&#8220;CREDO I China will broaden CapitaLand’s fund offerings to real estate debts, going beyond our existing 15 private equity funds, which focus primarily on direct investment in property projects,” according to CapitaLand&#8217;s president and group CEO Lee Chee Koon.
The first close of CREDO I China comes at a time when a significant volume of China’s commercial real estate loans are due for refinancing within the next few years. Additionally, CapitaLand’s President (China &amp; Investment Management) Lucas Loh said borrowers have turned to non-bank lenders due to bank regulatory changes.
“We will tap on CapitaLand’s operating capabilities and network in China to source for investment in quality property debt instruments for this debt fund,” he added.
According to data from the National Bureau of Statistics, growth in China&#8217;s real estate investment eased in September last year and home sales fell for the first time since April.
Growth in real estate investment, which mainly focuses on residential but also includes commercial and office space, rose 8.9 per cent in September from a year earlier, compared with a 9.2 per cent rise in August.
The fundraise underscores the growth in demand for real estate finance fund targeting mezzanine debt and other subordinated instruments through the origination of financing for high-quality properties in major markets across China, said CapitaLand Investment Management CEO James Lim.
CapitaLand is the largest real estate manager in Asia Pacific and ranked 13th globally based on total real estate assets under management.
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CapitaLand Limited has raised $556 million for the first close of its debut China-focused discretionary real estate debt fund, CREDO I China.

CapitaLand makes first close of debut China real estate debt fund at $556m

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CapitaLand makes first close of debut China real estate debt fund at $556m

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