CapitaLand Investment Limited (CLI) has raised an additional S$1.3 billion ($950 million) from global institutional investors for three private funds.
According to a company statement on Friday the fresh capital will be distributed across the three funds as follows:
- S$870 million ($650 million) will go to CapitaLand China Opportunistic Partners Programme (CCOP Programme)
- S$134 million ($100 million) will be for CapitaLand Open End Real Estate Fund (COREF), which is CLI’s flagship regional core-plus fund and,
- S$263 million ($197 million) will be for its new India business park development fund, CapitaLand India Growth Fund 2 (CIGF2).
Equity fundraising by CLI in the first eight months of this year—S$3.2 billion—has already exceeded full-year 2022’s levels (S$2.5 billion) by 28%.
“Our bespoke strategy and attractive risk-adjusted returns have drawn significant investor interest despite the challenging macroeconomic environment,” said Simon Treacy, CEO, Private Equity Real Estate, CLI.
CLI plans to grow and embark on funds focused on value-add opportunities in Asia Pacific. “We will continue to build up country-specific domestic funds and capital sources in China and India. We will also pursue opportunities to grow our private funds across the new economy and alternative asset classes,” added Treacy.
Net profit falls in H1
Separately, CapitaLand posted a 19% drop in net profit to S$351 million for the first half of the year ended June 30, from S$433 million in the year-ago period. The company attributed the fall to lower portfolio gains, high interest rates and a cautious dealmaking environment which slowed asset recycling transactions.
Lee Chee Koon, Group CEO of CLI, said: “Despite a challenging environment, we have continued to press ahead and execute well on our priorities… We will remain disciplined and selective in our acquisitions to ensure we continue to deliver consistent and high-quality returns. We will also intensify our efforts to raise domestic capital to support our China business, further diversify our portfolio and scale up our business globally.”
As of H1 2023, CLI’s funds under management (FUM) stood at S$89 billion. The group continued to gain strong fundraising traction, attracting more than S$4 billion across its listed and private funds platforms.