(Reuters) -Real estate investment manager CapitaLand Investment Ltd said on Wednesday that it has launched its first onshore master fund in China, backed by a total equity commitment of 5 billion yuan ($692.58 million).
The Singapore-based company said its new fund, CLI RMB Master Fund, will target business parks, retail, rental housing, and serviced residences, with a majority stake to be held by a local insurance company.
“This (the fund) allows us to tap into a rising trend of insurance companies increasing their capital allocation to real estate in China,” said Puah Tze Shyang, chief executive officer, CapitaLand Investment China, adding that it will provide opportunities to invest in a diversified and resilient portfolio of stabilised assets with core returns.
The company expects the CLI RMB Master Fund to add 20 billion yuan to its funds under management once fully deployed.
($1 = 7.2194 Chinese yuan)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Sherry Jacob-Phillips)
