CapitaLand Investment Limited (CLI) and Pruksa Holding Public Company Limited (PSH) jointly announced the establishment and the first close of the inaugural wellness and healthcare-related real estate fund, CapitaLand Wellness Fund (C-WELL), with an initial equity investment of S$350 million ($256 million).
The target equity size of the fund is S$500 million, with an option to upsize to S$1 billion in equity and a target asset value of S$2.9 billion when fully deployed, according to a joint statement issued by the companies.
This is not the first time that a fund has been launched by Singapore-headquartered CLI in partnership with Thai real estate developer PSH. The two launched CapitaLand SEA Logistics Fund last year.
C-WELL will initially focus on markets such as Singapore, Thailand and Malaysia and target investments in single or mixed-used assets across the wellness spectrum such as residential, lodging, senior living, clinics, medical suites, hospital facilities, and wellness- and lifestyle-oriented living solutions.
The fund will also have an allocation for relevant strategic development opportunities in the Asia Pacific region, per the release.
“This is an opportune time to expand our footprint into wellness and healthcare-related real estate in Southeast Asia, one of the fastest growing regions in the world,” said Patricia Goh, CEO at Southeast Asia Investment, CLI. “Underpinned by strong growth fundamentals including longer life expectancies, higher disposable income and changing lifestyle trends, the longevity economy in the region has gained traction with increasing market favour for real estate prioritising wellness and healthcare.”
In line with its asset-light strategy, CLI will maintain a sponsor stake in C-WELL, contributing to its funds under management and fee-related earnings and offering their investors and capital partners the opportunity to jointly participate in this nascent sector with tremendous growth potential.
“At Pruksa, we see shifting dynamics related to the increasing proportion of elderly individuals living independently and the potential impact on their health. We anticipate that this trend will lead to a growing demand for healthier real estate options tailored for ‘ageing in place’ care,” said Uten Lohachitpitaks, Group CEO at PSH.