CLI Closes Second Onshore Sub-Fund Under RMB Master Fund, Targeting RMB1.48 Billion in FUM

CapitaLand Investment (CLI) has successfully closed its second onshore sub-fund, China Retail RMB Fund I (CRF I), under the CLI RMB Master Fund.

In addition to the equity commitment from the Master Fund, CLI has secured investments from several onshore institutional investors, bringing the total fund size to RMB1 billion (US$183 million).

Upon full deployment, CRF I is expected to contribute RMB1.48 billion to CLI’s funds under management (FUM).

With this closing announced on December 11, CLI has raised nearly RMB55 billion in domestic capital across nine onshore funds since 2021, demonstrating strong investor demand.

As part of the transaction, CLI will recapitalize CapitaMall Xinduxin by selling it as the seed asset to CRF I. Located in Qingdao’s Shibei District, the retail property spans 141,000 square meters with a committed occupancy rate of approximately 99.6%. The mall is directly connected to Qingdao’s Subway Line 3. CLI will retain management responsibilities and continue earning recurring fee income.

Puah Tze Shyang, CEO of CLI (China), stated: "Since launching our RMB Master Fund in May, we have received strong investor support, closing two sub-funds in rapid succession. CRF I provides exposure to a prime retail asset with strong footfall, a well-curated tenant mix, and active asset management to drive growth."

Kara Wang, CIO of CLI (China), added: "The recapitalization of CapitaMall Xinduxin demonstrates our disciplined approach to recycling quality assets into RMB funds under our domestic-for-domestic strategy. Since the beginning of the year, we have recapitalized approximately RMB6.7 billion worth of assets in China, freeing up capital for reinvestment into new opportunities."

CLI’s first sub-fund under the Master Fund was the China Business Park RMB Fund IV, which closed in September with RMB1.74 billion in FUM and Dalian Ascendas IT Park as its seed asset. CLI maintains a pipeline of retail, business park, logistics, and rental housing assets across Tier 1 and leading Tier 2 cities to support future sub-funds under the RMB Master Fund.