Singapore’s CapitaLand said it has successfully registered as a private equity fund manager (PEFM) with the Asset Management Association of China to carry out RMB-denominated capital raising and provide fund management services for prospective RMB funds in the country.
The firm said it was one of a few wholly foreign-owned businesses to have obtained the PEFM status in China.
The first RMB-denominated fund product is expected to be launched in 4Q 2021.
The Singapore real estate major plans to invest through the fund in new economy assets such as business parks, logistics and data centres, anchored by an optimal combination of value creation opportunities and core-plus assets.
The PEFM position will help CapitaLand forge more capital partnerships with domestic institutional investors and access “abundant liquidity” in its largest core market to grow its funds under management and fee-related earnings, the company said.
Targeted institutional investor types will include a domestic insurance company, bank-backed investment platform, non-bank financial institution and government investment vehicle.
“As China develops into one of the world’s largest asset management markets in the next few years, we see tremendous potential to tap the market liquidity for scaling our investment management platform,” CapitaLand group CEO Lee Chee Koon said in a statement.
Operating as a PEFM in China will also catalyse CapitaLand’s transition towards an asset-light and capital-efficient business model, he added.
“We will now be able to offer our fund management services to new and more investors through onshore fundraising. This will help to further diversify our domestic investor base in China and complement our existing offshore capital platforms such as CapitaLand China Trust and portfolio of private funds,” said Puah Tze Shyang, CEO of CapitaLand China.
In April this year, CapitaLand acquired its first hyperscale data centre in Shanghai for 3.66 billion yuan ($564 million). It was part of the firm’s plans to grow its exposure to new economy assets in China to S$5 billion ($3.7 billion) over the next few years, from S$1.5 billion ($1.1 billion) at the end of 2020.