CapitaLand is paving the way for international investors and European pension funds to invest in China’s retail malls, with the launch of the first pure China Retail REIT.
The CapitaRetail China Trust has received from Singapore Exchange, a conditional eligibility to list CRCT on the Main Board of SGXST1.
CRCT’s initial portfolio comprises seven retail malls which are strategically located in five cities across China valued at $S690 million ($A580 million).
The portfolio has a total gross rentable area of approximately 413,000 sqm and includes the Wangjing Mall, Jiulong Mall and Anzhen Mall in Beijing, Qibao Mall in Shanghai, Zhengzhou Mall in Zhengzhou, Jinyu Mall in Huhehaote and Xinwu Mall in Wuhu.
In addition, CRCT has been given the right of first refusal over acquisition of properties in two CapitaLand-sponsored private retail property funds, namely, CapitaRetail China Development Fund and CapitaRetail China Incubator Fund, and also properties under CapitaLand Retail Limited, the retail property arm and wholly-owned subsidiary of CapitaLand.
CapitaLand’s chief executive Liew Mun Leong said the establishment of CRCT marks a significant milestone for the CapitaLand Group as it is a pivotal piece that completes the group’s integrated China retail mall strategy for China.
“This is one of two Singapore REITs sponsored by CapitaLand which provide principal exposure to overseas assets. The other being the Ascott Residence Trust.
“Both these REITs demonstrate CapitaLand’s success in deploying its integrated real estate value chain in multiple geographies, from making acquisitions, to developing, operating, managing and scaling up the business, and eventually floating these assets in a REIT market ready for such a product. We believe that CapitaLand has, in the process, continued to contribute to the development of the capital and real estate market,” he added.
Liew said for CRCT, it is underpinned by the group’s strong understanding of the China retail market.
“…reinforces our multi-sectorial approach in China and is in line with the group’s asset productivity strategy. It also underscores not only our confidence in the fundamentals of the retail real estate but also our commitment as a long term real estate player in China.
“Given the quality assets in the initial listing portfolio, and the strong proprietary acquisition pipeline, CRCT is expected to significantly grow its asset size in the years ahead. We are also confident that CRCT will provide unitholders with stable distributions and strong growth potential,” he added.
Upon receiving the relevant regulatory clearances and approvals, CRCT units of up to 46.7% that are held by CapitaLand will be offered to institutional and other investors in Singapore and overseas.
The remaining units will be held by strategic investors, namely CapitaLand, through its indirect wholly-owned subsidiary Retail Crown Pte. Ltd, CapitaMall Trust, the Netherlands pension fund – Stichting Pensioenfonds voor de Gezondheid, Geestelijke en Maatschappelijke Belangen and the Great Eastern Life Assurance Company Limited.
PGGM and Great Eastern are also strategic investors in the Development Fund and Incubator Fund.
By Nelson Yap
