CapitaLand Investment raises additional S$1.3 billion third-party equity commitment for its private funds

Secures new funds totaling S$870 million for the CapitaLand China Opportunistic Partners Programme

Announces a significant injection of S$134 million of funds for the CapitaLand Open End Real Estate Fund.

Raises S$263 million for the growth of CapitaLand India Fund 2

CapitaLand Investment Limited (CLI) has recently obtained roughly S$1.3 billion (equivalent to US$950 million[1]) in equity backing from international institutional investors for three of its private funds. This brings the total amount of equity raised by CLI to S$3.2 billion[2] so far this year. This impressive sum, accrued within a span of eight months, represents a 28% growth compared to the S$2.5 billion of equity secured for the entire year of 2022.

The main goal of CapitaLand India Growth Fund 2 (CIGF2) is to make investments in top-notch business parks located in key areas of major cities in India. As its initial investment, CIGF2 has obtained 70% ownership of the International Tech Park Chennai, Radial Road.

The recently raised funds, totaling S$1.3 billion, were collected from outside sources. Of this amount, S$870 million (US$650 million) has been specifically allocated to the CapitaLand China Opportunistic Partners Programme (CCOP Programme). Another S$134 million (US$100 million) has been set aside for CapitaLand Open End Real Estate Fund (COREF), which is the company's main regional core-plus fund. Additionally, S$263 million (US$197 million) has been designated for the CapitaLand India Growth Fund 2 (CIGF2), which aims to develop new business parks in India.

According to CLI's CEO, Mr. Simon Treacy, their efforts to raise funds for real estate investments in Asia have been quite successful. They have raised a total of SGD 3.2 billion in equity this year, showcasing the trust that their capital partners have in their regional expertise. CLI's unique approach and ability to offer favorable risk-adjusted returns have attracted a considerable amount of interest from investors, even in the midst of a difficult economic climate.

Mr. Treacy stated that due to the overwhelming interest from investors in the CCOP Programme, COREF, and CIGF2, they will continue to expand these fund products and intends to create funds that focus on valuable opportunities in the Asia Pacific region. Additionally, they plan to establish funds and acquire financial resources specific to individual countries in China and India. Furthermore, they will actively seek out chances to expand their private funds in emerging industries and non-traditional asset categories.

Since the establishment of the CCOP Programme in February 2023, with the aim of investing in unique situations in China, a total of S$2.1 billion has been committed as equity. CLI, in accordance with its asset-light approach to expanding its funds under management (FUM), holds a 20% ownership in the CCOP Programme, maintaining a close alignment with its investors and partners.

CLI is selling a small portion of its ownership in a top-notch logistics project in Foshan, Guangdong to the CCOP Programme. CLI purchased the logistics project in May 2022 as an initial investment for the CCOP Programme and sold a portion of its ownership to the CCOP Programme in February 2023. The logistics project, which is custom-made to suit the needs of a prominent domestic textile e-trading platform, is already fully rented out.

Mr Puah Tze Shyang, the CEO of CLI China, stated that CLI's ability to seize investment opportunities, transfer the assets to our funds, and enhance the value of these assets sets us apart from others. By divesting the Foshan logistics development to the CCOP Programme, CLI demonstrates its commitment to providing a strong pipeline of assets to support the growth of our managed funds. This divestment is also consistent with our disciplined efforts to recycle capital. The CCOP Programme will now focus on deploying capital and working closely with our on-site team to take advantage of market disruptions and special situations. With almost three decades of experience in China, our extensive knowledge of the market allows us to continue offering our capital partners attractive deals in various real estate sectors.

The construction of the logistics development in Foshan is expected to be finished in the third quarter of 2023. The logistics asset has a total area of 140,355 square meters and is located in a highly desirable area close to transportation networks. It is only 10 kilometers away from the upcoming Pearl River Delta Hub Airport, which is estimated to accommodate 30 million passengers by 2035. In line with CLI's plans for sustainability, the asset aims to achieve a Leadership in Energy and Environmental Design Existing Buildings - Gold certification by 2026. Currently, a study is being conducted to assess the feasibility of installing rooftop solar panels.

In addition to investing in the growth of the logistics sector in Foshan, the CCOP Programme has also obtained ownership of Innov Tower (previously known as Beijing Suning Life Plaza) as part of its single-asset fund in February 2023. The fund plans to enhance the value of the property by transforming and improving the retail area into a high-quality office space, which can attract tenants willing to pay higher rental rates.

CLI's private funds are experiencing a robust surge in growth as they continue to gain a substantial amount of traction in the market.

Since its establishment in September 2021, COREF has made strategic investments in various countries such as Japan, Singapore, and Australia in order to achieve a well-rounded geographical portfolio. In April 2023, CLI ventured into the multifamily sector by entering into a forward purchase agreement with a reputable residential developer based in Osaka. Through this agreement, COREF was able to acquire six multifamily properties located in Central Osaka, Japan, for a total purchase price of S$141.4 million (equivalent to US$105.9 million[3]). This addition complements COREF's existing four high-quality office assets and aligns with its objective of creating a diverse portfolio of income-generating assets in well-developed markets across the Asia Pacific region.

CLI has recently unveiled CIGF2, a brand new fund dedicated to the development of business parks in India. With a keen focus on Grade A facilities, CIGF2 aims to strategically invest in well-positioned business parks, located in key cities throughout the country.

CLI created a fund called CapitaLand China Data Centre Partners (CDCP) in February 2023 to develop data centres in China. CDCP plans to invest in two large-scale data centre projects in Greater Beijing. Once these projects are finished, they are expected to increase CLI's assets under management (FUM) by about S$1 billion. The total amount of money put into CDCP is S$530 million, with 80% of the ownership belonging to existing and new institutional investors from around the world, and the remaining 20% owned by CLI.

As of June 30, 2023, CLI's private funds' assets under management (AUM) amount to S$29 billion, showing a growth of 12% compared to the S$26 billion in the first half of 2022.

CapitaLand Investment Limited (www.capitalandinvest.com) provides a range of services related to investment activities.

Located and registered in Singapore, CapitaLand Investment Limited (CLI) is a prominent worldwide manager of investments in real estate, with a firm presence in Asia. As of June 30, 2023, CLI held S$134 billion worth of real estate assets that it managed, as well as S$89 billion worth of real estate funds managed through six publicly traded real estate investment trusts and business trusts, and over 30 privately operated entities across Asia Pacific, Europe, and the USA. Its wide-ranging portfolio of real estate assets includes retail properties, office spaces, accommodations, business parks, industrial facilities, logistics hubs, and data centers.

CLI is focused on increasing its funds under management (FUM) and earnings from fees by utilizing its expertise in managing funds, accommodations, and various operational capabilities. Additionally, CLI places a strong emphasis on efficiently managing its capital. As a part of CapitaLand Group, CLI is able to leverage the development expertise and investment prospects offered by CapitaLand's development division.

As a conscientious organization, CLI prioritizes sustainability and has made a firm pledge to reach Net Zero emissions for scope 1 and 2 by 2050. CLI actively contributes to the prosperity of the environment and society in the areas where it conducts its business, while also generating lasting economic benefits for its stakeholders.

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J.P. Morgan (S.E.A.) Limited was responsible for supporting and facilitating the admission and inclusion of CapitaLand Investment Limited on the Singapore Exchange Securities Trading Limited. However, J.P. Morgan (S.E.A.) Limited does not bear any liability for the information and details provided in this statement.

This statement and the details included within are not considered and are not meant to be an invitation to invest in stocks, thus should not be interpreted as such.

[1] Current conversion rate: 1 US dollar is equivalent to 1.33658 Singapore dollars.[2] Consists of the equity contribution from CLI.[3] Current exchange rate: 1 US dollar equals 1.3356 Singapore dollars.

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