Singapore’s real estate investment trust (REIT) sector is set to make history with the proposed launch of the first China REIT (C-REIT), seeded by assets within the group’s ecosystem.
The initiative involves CapitaLand Investment (CLI), CapitaLand China Trust (CLCT), and CapitaLand Development (CLD), which will collectively own a 20% stake in the new C-REIT. The listing is anticipated to occur within the next year.
The move is part of CLI’s ongoing strategy to expand its funds under management (FUM) by tapping into China’s growing pool of onshore capital.
This development is seen as a significant step in attracting international investors looking to deploy capital into China, despite initial questions about CLCT’s viability and strategy. The REIT is expected to leverage onshore recycling opportunities over time, which could mitigate concerns about its current steep discount to book value.
“`
