CapitaLand China Trust rejigs portfolio to lower exposure to retail malls, ramp up DPU growth

Goola Warden
Goola Warden10/14/2021 11:43 AM GMT+08  • 8 min read
CapitaLand China Trust rejigs portfolio to lower exposure to retail malls, ramp up DPU growth
CapitaLand China Trust acquires logistics assets to stabilise and grow DPU, and lower exposure to retail
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On Oct 12, CapitaLand China Trust (CLCT) announced plans to acquire four logistics assets in Shanghai, Kunshan, Wuhan and Chengdu. The total cost including expenses and $9.6 million of rent support works out at $297.7 million.

Over the past year, CLCT has transformed from a China-focused pure retail mall REIT to a multi-asset China S-REIT. After the acquisition of the four logistics properties, CLCT’s AUM will comprise 78.6% retail, 14.1% business/tech park and 7.3% logistics. Tan Tze Wooi, CEO of CLCT’s manager, has indicated that CLCT is aiming for 30% retail, 30% New Economy, and 40% integrated and commercial.

During the briefing on Oct 12 for analysts and media, Tan said the move towards the logistics sector is in line with the strategic direction since the expansion of its investment mandate, which is to enhance portfolio diversification and income resilience. It includes adding a new exposure to a new asset class.

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