SINGAPORE (Nov 13): CapitaLand announced that its third integrated development private investment vehicle in China, Raffles City China Investment Partners III (RCCIP III), has formed a 50:50 joint venture (JV) with Singapore’s sovereign wealth fund GIC to acquire Shanghai’s tallest twin towers for RMB 12.8 billion ($2.54 billion).
CapitaLand holds a 41.7% stake in RCCIP III, with the remaining interests held by investors from Asia, North America and the Middle East.
This acquisition is in line with the group’s strategy of growing its portfolio by leveraging its fund management capability.
The development is currently under development in the Hongkou District and will be CapitaLand’s third Raffles City integrated development in Shanghai and 10th globally.
It has a gross floor area (GFA) of 312,717 sqm, excluding car park, with two 50-storey premium Grade A towers linked at the base by a seven-storey shopping mall. The development has achieved structural completion and is expected to open in phases from 2H19.
Lee Chee Koon, president and group CEO of CapitaLand Group says, “CapitaLand remains the foreign developer with the largest portfolio under management in Shanghai, a strong market with the depth to support our third Raffles City integrated development. In line with our long-term belief in China, we will stay invested through market cycles to reap the compounding effects on our investments. CapitaLand remains on the active lookout for quality opportunities to deploy our capital into higher-yielding assets to improve our overall returns.”
Shares in CapitaLand last traded 2 cents lower at $3.11 on Monday.