US$750-million CREDO I China will invest in offshore US dollar-denominated subordinated instruments for real estate in China’s first- and second-tier cities including Beijing, Chengdu, Chongqing, Dongguan, Guangzhou, Hangzhou, Hong Kong, Nanjing, Shanghai, Shenzhen, Suzhou, Tianjin, Wuhan, Wuxi, Xi’an, etc.
It will focus on loans and securities of high-quality real estate covering commercial, retail, residential, logistics and industrial properties.
CapitaLand has raised over 70% of the capital or US$556 million for CREDO I China’s first closing, with subsequent commitments from major institutional investors expected later this year. CapitaLand will hold a 10% stake in the fund. It is set to be one of China’s largest real estate debt funds.
Mr Lee Chee Koon, CapitaLand’s President & Group CEO, said: “We are delighted with the strong investor participation in CREDO I China. Fund management business is an integral part of CapitaLand’s strategy2. CREDO I China will broaden CapitaLand’s fund offerings to real estate debts, going beyond our existing 15 private equity funds, which focus primarily on direct investment in property projects.