The Canada Pension Plan Investment Board (CPPIB) is investing $375m (鈧�344.6m) in CapitaLand鈥檚 Raffles City China Investment Partners III (RCCIP III).
The vehicle, CapitaLand鈥檚 third private investment fund in China, is targeting multi-use developments in gateway cities in China.
CPPIB鈥檚 investment represents a 25% stake in the vehicle, which has been backed by investors from Asia, North America, and the Middle East. CapitaLand raised $1.5bn for the fund, which has an eight year life.
Jimmy Phua, managing director and head of real estate investments for Asia at CPPIB, said: 鈥淚nvesting in CapitaLand鈥檚 new China investment vehicle gives CPPIB the opportunity to expand on our long-term strategy of investing in high-quality commercial real estate in China to deliver solid risk-adjusted returns over the long term.鈥�
Lucas Loh, chief executive of CapitaLand China, said: 鈥淐hina is a market with robust long-term investment potential with continued demand for property riding on the back of urbanisation, economic growth, the rise of the services sector, a growing middle class, and rising domestic consumption.
鈥淭hese socio-economic themes feature prominently in gateway Chinese cities where the growth trajectory remains robust, heralding opportunities for integrated developments around key transportation hubs.鈥�
The first Raffles City China fund was formed in 2008 with a total size of $1bn, before being increased to $1.2bn.
Raffles City-branded developments in China are held through the series of funds, namely Raffles City Shanghai, Raffles City Beijing, Raffles City Chengdu, Raffles City Ningbo and Raffles City Hangzhou.
