CapitaLand retail C-Reit IPO Draws Massive Investor Demand, Raising ¥2.29 Billion
Shanghai – CapitaLand Retail China Trust (CLCR) concluded its initial public offering (IPO) in Shanghai with a subscription rate of 535 times, successfully raising ¥2.29 billion (approximately S$468 million), according to a statement released today. The strong demand underscores investor confidence in the Chinese retail sector and CapitaLand Investment’s (CLI) strategy to unlock value from its mature assets.
The newly launched C-Reit will hold two established shopping malls: capitamall Sky+ in Guangzhou’s Baiyun Central Business District, directly connected to Baiyun Park subway station, and capitamall Yuhuating in Changsha’s yuhua district, accessible from two adjacent subway stations. these properties boast a combined gross floor area of 168,405 square metres and a 96 percent occupancy rate as of March 31. CLI will continue to operate both CapitaMall Sky+ and CapitaMall Yuhuting following CLCR’s listing.
CLI first announced plans to launch the C-Reit in April, positioning it as a platform to tap into China’s largely untapped domestic capital market. ”A C-Reit would provide a platform to unlock value from CLCT’s mature assets to improve financial flexibility, allow it to pursue income diversification and enhance its portfolio quality,” explained Gerry Chan, chief executive of CLCT’s manager, at the time of the announcement.
Chan further clarified the distinction between CLCR and CapitaLand China Trust (CLCT), noting the C-Reit will concentrate on income-producing retail assets, while CLCT is a diversified asset-class Reit encompassing retail, business park, and logistics properties. CLCT’s investment mandate extends across the Greater China region, including Hong Kong and Macau, whereas CLCR focuses exclusively on mainland China.
As of Thursday’s close, CLI shares remained flat at S$2.77, and CLCT units were unchanged at S$0.79.
