CapitaLand C-reit’s Shanghai IPO Offering Increased to 2.29 Billion Yuan
SHANGHAI – CapitaLand Commercial C-Reit (CLCT) has revised its initial public offering (IPO) in Shanghai upward to 2.29 billion yuan, a 7% increase from its earlier estimate, as it prepares to launch China Logistics C-Reit (CLCR). The move signals strong investor interest in the logistics real estate sector within mainland China.
The divestment of CapitaMall Yuhuating in Changsha to CLCR is valued at 813.8 million yuan, representing an 8.8% premium over the floor price of 748 million yuan and a 3.7% premium over the property’s valuation at the end of 2024. This transaction will yield an exit yield of approximately 6.2% based on the mall’s 2024 net property income of 50.7 million yuan. CLCT anticipates net proceeds of around 663.4 million yuan from the divestment.
Approximately 47.9 million IPO units will be offered to the public on Tuesday, with CLCR’s listing anticipated by the fourth quarter of 2025.CapitaMall SKY+ in guangzhou is also slated to be included in CLCR’s initial portfolio.
“CLCR provides a platform to unlock value from our mature assets, bolstering our financial adaptability to pursue income diversification and enhance portfolio quality,” stated Gerry Chan, CEO of CLCT’s manager. He further clarified the strategic focus, noting that “CLCT’s investment mandate covers the Greater China region, including Hong Kong and Macau, whereas CLCR will concentrate exclusively on mainland China.”
CapitaLand Investment (CLI), CLCT, and CapitaLand Growth are collectively expected to retain at least a 20% stake in CLCR.
The anticipated net proceeds from the divestment are expected to improve CLCT’s financial position, reducing its aggregate leverage from 42.6% as of March 31, 2025, to 41.2%. This is projected to result in a slight increase in net asset value per unit,rising from S$1.09 to S$1.11.
CLCT units closed at S$0.77 on Friday, a decrease of 0.7% or S$0.005, while CLI shares ended the day up 0.7% or S$0.02 at S$2.77.
