Property development and investment group Metro Holdings has agreed to invest 200 million yuan (S$39.8 million or $29 million) for a 50 per cent stake in Xiamen CICC Qihang Equity Investment Partnership (CICC Qihang Fund), according to a market disclosure on the Singapore Exchange.
The fund, with a size of approximately RMB400 million (S$79.6 million), will be managed by CICC Capital Management Co., Ltd., an affiliate of CICC Capital.
Alongside this transaction, CICC Qihang Fund has formed a 50:50 joint venture with Xiamen ARA Qihang Equity Investment Fund, a fund managed by ARA Asset Management Limited.
This joint venture has agreed to acquire a prime commercial mall in Chengdu, China from independent vendor Tishman Speyer China Fund (Barbados).
The mall is part of a landmark mixed-use development, The Atrium, which covers 123,170 square metres and includes a Class A office tower, luxury residences and premier serviced apartments.
Through CICC Qihang Fund, Metro Group will hold an effective 25 per cent stake in the mall. ARA will be responsible for the asset enhancement and property management of the mall.
“Metro aims to broaden its revenue stream and sustain profitability through new property investments, asset enhancements and strategic alliances with established partners. In particular, the Investment will enable the Metro Group to expand its property interests in the PRC, which is one of its key markets,” Metro said in the disclosure.
Listed on the Mainboard of the SGX-ST in 1973, Metro Holdings was founded in 1957.
Metro has grown over the years to become a property investment and development group with a broadened and diversified asset portfolio, backed by an established retail track record, with a turnover of S$136.3 million and net assets of S$1.5 billion as at 31 March 2018.
CICC Capital, established in 2017, is CICC’s 100 per cent owned private equity vehicle with an aggregate asset under management of about RMB300 billion and is a leading private equity brand in China.
ARA is a global integrated real assets fund manager. As at 31 December 2018, the Gross Assets Managed by ARA Group and its Associates is approximately S$80.1 billion across over 100 cities in 23 countries.