Singaporean real estate group CapitaLand Investment ( CLI ), Asia-Pacific’s largest real estate investment trust ( Reit ) sponsor-manager by market capitalization, has applied for the registration and listing of its first Reit in China – CapitaLand Commercial C-REIT ( CLCR ) – with the China Securities Regulatory Commission ( CSRC ) and the Shanghai Stock Exchange ( SSE ).

The listing would mark the first international-sponsored retail commercial Reit ( C-Reit ) and the first such C-Reit by a Singapore-based company once approved. It would also increase funds under management of CLI’s listed funds platform, strengthening its position as the region’s largest Reit sponsor-manager.

The C-Reit, CLI says, will invest in operating retail assets in China, benefiting from the Chinese government’s policies to stimulate domestic consumption. It will be seeded with two high-quality mature assets, CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha.

These properties have a combined value of approximately 2.8 billion yuan ( US$382.86 million ) and a total gross floor area of 168,405 square metres with an aggregate committed occupancy of 97%. CapitaMall SKY+ is jointly owned by CLI and CapitaLand Development ( CLD ) while CapitaMall Yuhuating is under CapitaLand China Trust ( CLCT ).

As strategic investors, CLI, CLCT and CLD will collectively hold at least a 20% interest in CLCR. As the sponsor as well as the asset manager of CLCR, CLI will continue to operate CapitaMall SKY+ and CapitaMall Yuhuating post-launch. 

Additionally, CLI will support the growth of CLCR and CLCT through its ability to offer a quality pipeline of potential assets. The real estate group manages 43 operational retail properties across 18 cities with total retail assets under management of approximately S$18 billion ( US$13.7 billion ) in China.

The proposed listing of CLCR is conditional upon the approval of CLCT’s independent unitholders at an extraordinary general meeting to be convened at a later date as well as regulatory approvals from the CSRC and SSE. 

“The listing of CLCR is in line with CLI’s strategy to pursue asset-light growth and expand in China by tapping domestic capital,” notes Puah Tze Shyang, CLI China’s CEO. “It will further strengthen CLI’s listed funds platform, broaden our access to perpetual domestic capital, and enable us to grow our assets under management and recurring fee income.

“This move also complements CLCT, our Singapore-listed fund for international investors looking to invest in China, allowing us to attract diverse capital sources that meet various investor requirements.”