Canada Pension Invests $375 Million in CapitaLand’s China Fund

Canada Pension Plan Investment Board, the country’s largest pension fund, said it invested $375 million CapitaLand Ltd.’s latest China property fund.

CapitaLand, Singapore’s largest developer, closed its $1.5 billion Raffles City China Investment Partners III fund, which will invest in gateway cities in China, the company said in a separate statement Tuesday. CapitaLand will subscribe to a 41.7 percent stake in the fund and Canada Pension will take 25 percent, with the other investors coming from Asia, the Middle East and North America.

“Investing in CapitaLand’s 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,” Jimmy Phua, managing director and head of real estate investments for Asia, said in the statement.

CapitaLand manages 16 real estate private platforms and five real estate investment trusts with assets under management of more than S$45 billion, ($32 billion) said Arthur Lang, group chief financial officer. The new China fund will help the developer reach its target of raising up to S$10 billion by 2020, he said.

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