CLI applies to list retail C-REIT in China

The C-REIT will be seeded with two retail assets in Guangzhou and Changsha.

CapitaLand Investment Limited (CLI) has applied to list a real estate investment trust (REIT) in China with the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE).

CapitaLand Commercial C-REIT (CLCR) will invest in operating retail assets in China. It will be seeded with two high-quality mature assets, CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha. 

If approved, CLCR will be the first international-sponsored retail C-REIT and the first C-REIT by a Singapore-based company.

The properties have a combined value of approximately $500m (RMB2.8b) and a total gross floor area of 168,405 square metres (sqm) with an aggregate committed occupancy of 97%.

CapitaMall SKY+ is currently jointly owned by CLI and CapitaLand Development (CLD) whilst 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. Meanwhile, as the sponsor and asset manager of CLCR, CLI will continue to operate CapitaMall SKY+ and CapitaMall Yuhuating post-launch.

The proposed listing 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 CSRC and SSE.