CapitaLand establishes US$215m housing private equity fund

Property group CapitaLand has set up a housing private equity fund that will invest in value housing developments in China.

The company said in a statement that the CapitaLand China Value Housing Fund (CCVHF) was successfully closed at US$215 million (S$264 million).

CapitaLand’s wholly-owned unit, CapitaValue Homes, has a 58.6 per cent stake in the fund, totalling up to S$155 million.

Meanwhile, other corporate and institutional investors hold the remaining stakes.

The CCVHF is CapitaLand’s 12th real estate private equity fund in China and has a fund life of five years.

Two value housing projects which are currently in development, The Rivervale in Guangzhou and The Floravale in Shanghai, will be injected into the fund as seed investments.

CapitaValue Homes’ chief executive officer, Chen Lian Pang, said in the statement that “China is currently 51 per cent urbanised and seven million new households are expected to form every year. Value housing will meet the needs and affordability of many young and first time homebuyers.”

Meanwhile, CapitaLand Financial’ chief executive officer, Wen Khai Meng, added “the fund will offer investors an opportunity to gain exposure to the value housing segment in China.”

CapitaLand currently has total assets under management of about S$36.1 billion from its six real estate investment trusts (REIT) and 15 private equity funds.

Source : Channel NewsAsia – 24 Oct 2012

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