CapitaMalls Asia sets up new US$1b Chinese fund

CapitaMalls Asia, the shopping mall arm of CapitaLand, has set up a US$1 billion private equity fund to invest in malls in China.

According to a filing with the Singapore Exchange, CapitaMalls Asia said the new fund – CapitaMalls China Development Fund III – has a fund life of eight years.

CapitaMalls will hold a 50 per cent stake in the fund amounting to US$500 million, with
institutional investors from Asia and North America holding the remaining stakes.

The fund will include three seed assets injected by CapitaMalls.

They are – CapitaMall Tianfu, an integrated development comprising retail, residential and office spaces in Chengdu; CapitaMall Meilicheng, a five-storey shopping mall in Chengdu; and the Luwan integrated development which comprises a shopping mall and office tower in Shanghai.

CEO of CapitaMalls Asia Lim Beng Chee said: “With China’s focus on increasing domestic consumption as its key economic driver, we remain confident in the prospects of the Chinese retail market. Retail sales are forecast to grow between 16 per cent and 17 per cent this year.”

CapitaMalls expects a gain of nearly S$36 million arising from this transaction, and hopes this fund will help expand the company’s competitive footprint in China.

Source : Channel NewsAsia – 2 Jul 2012

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