Singapore-based real estate group, CapitaLand Limited has reached an agreement with Ping An Life Insurance Company to sell partial stakes in six of the nine Raffle City Developments that are worth CNY 46.7bn ($7.23bn). The real estate group will continue to hold an effective stake of 12.6% to 30% in the developments even after the sale and will also continue to provide asset management services to these developments. The portfolio in consideration includes properties in Shanghai, Beijing, Ningbo, Chengdu, Shanghai and Hangzhou. The transaction, likely to be complete by Q3, will generate net proceeds of S$2bn ($1.49bn) for CapitaLand. This comes as the company is focusing on becoming an asset light, capital-efficient real estate investment manager by diversifying its investor base through partnerships with China’s domestic institutional investors. Including this deal, the group has already announced divestments of ~$8.34bn this year and intends to use a part of the capital raised to support a pivot to new economy assets such as business parks, logistics and data centers. Mr Lee Chee Koon, CEO of CapitaLand Group, said: “CapitaLand has built up an investment property pipeline of over S$24.4 billion ($18.2bn) of assets in China, with a proven capital recycling track record over the past 27 years. We are looking forward to forging more capital partnerships with China’s domestic institutional investors to diversify CapitaLand’s investor base.”
CapitaLand’s 3.8% 2024s and 3.65% perps were stable and trading at 107.14 and 102.5 respectively.
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