CLI establishes first onshore master fund in China

The master fund will invest in a series of sub-funds to acquire high-quality assets.

CapitaLand Investment Limited (CLI) has established its first onshore master fund in China, CLI RMB Master Fund, with a total equity commitment of $921m (RMB5b).

The master fund will invest in a series of sub-funds to acquire high-quality, income-producing assets with long-term growth potential.  

CLI has secured a domestic insurance company to take up a majority stake in line with its asset-light strategy to grow its funds under management (FUM).

“This allows us to tap into a rising trend of insurance companies increasing their capital allocation to real estate in China,” Puah Tze Shyang, Chief Executive Officer of CLI China, said.

The master fund is expected to contribute $3.7b  (RMB20b) to CLI’s FUM when fully deployed.