CapitaLand Commercial C-REIT has made a significant debut on the Shanghai Stock Exchange, becoming China’s first international-sponsored retail C-REIT. The listing ceremony, marked by a gong-striking ceremony, was a momentous occasion attended by key figures from CapitaLand Investment Limited (CLI), including Mr. Lee Chee Koon, Group CEO of CLI, and other prominent executives.
The successful listing of CapitaLand Commercial C-REIT under the stock code 508091 at RMB6.840 per unit signifies a strong start, trading 19.6% above its initial public offering price. This milestone bolsters CLI’s position as the largest REIT manager in the Asia Pacific region, with a total market capitalization of approximately S$42 billion across various listed funds in Singapore, China, Malaysia, and Japan.
CapitaLand Commercial C-REIT raised RMB2.29 billion through its IPO, surpassing the initial estimate and demonstrating robust investor interest. The forecast distribution yield for FY 2025 and FY 2026 stands at 4.40% and 4.53%, respectively, showcasing the potential for returns in the coming years.
In parallel, CLI has closed its first sub-fund, China Business Park RMB Fund IV, under the CLI RMB Master Fund, in collaboration with a leading domestic insurance company. This move aligns with CLI’s capital recycling strategy and signifies a strategic investment approach in China’s real estate market.
Mr. Puah Tze Shyang, CEO of CLI China, emphasized the significance of the listing, highlighting the adoption of global best practices and extensive experience in China to create a high-quality C-REIT platform that delivers value to investors. This strategic move strengthens CLI’s capital recycling journey and supports its shift towards an asset-light business model.
Investor demand for CapitaLand Commercial C-REIT has been strong, with a record-breaking institutional subscription rate, positioning it as a frontrunner in China’s C-REIT market. The IPO units were predominantly allocated to insurance companies, strategic investors, and securities firms, underscoring confidence in the REIT’s potential.
CapitaLand China Trust Management Limited and CapitaLand Development have divested assets into CLCR, further enhancing the REIT’s portfolio. The successful listing of CLCR signifies a significant milestone for CapitaLand Development in optimizing its commercial assets in China and capital reinvestment.
CapitaLand Commercial C-REIT’s portfolio comprises two prime retail assets, CapitaMall SKY+ and CapitaMall Yuhuating, valued at approximately RMB2.6 billion collectively. These assets boast high occupancy rates and strategic locations in Guangzhou and Changsha, catering to vibrant commercial and residential communities.
CLI’s commitment to delivering long-term value to investors through operational expertise, active asset management, and a strong tenant network is evident in its management of CapitaMall SKY+ and CapitaMall Yuhuating. The company’s focus on income-producing retail assets in top-tier cities aligns with China’s consumption-driven policies and promises growth opportunities.
With a diversified portfolio and a robust market debut, CapitaLand Commercial C-REIT’s listing on the Shanghai Stock Exchange not only expands CLI’s reach but also sets a benchmark for the C-REIT market in China. The company’s strategic initiatives and commitment to sustainable growth position it as a key player in the region’s real estate investment landscape.
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