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CapitaLand Commercial C-REIT raised USD 322 million in an oversubscribed IPO on the Shanghai Stock Exchange, issuing 400 million units at 5.718 yuan each, surpassing its initial target by 7%. Major buyers included insurers, strategic investors, and securities firms, while CapitaLand Investment retained a 20% stake. Institutional and retail demand was extremely high, with subscriptions exceeding estimates by hundreds of times. The IPO aligns with CapitaLand Investment's strategy to utilize local capital for fund growth and recurring fee income. CLCR will become China's first internationally sponsored retail REIT.
Singapore-based CapitaLand Commercial C-REIT (CLCR) has successfully raised 2.29 billion yuan, equivalent to approximately USD 321.7 million, through its initial public offering on the Shanghai Stock Exchange, the company's parent, CapitaLand Investment, reported. CLCR issued 400 million units at 5.718 yuan each, exceeding its original estimate of 2.14 billion yuan by 7%. Advertisement
Most of the IPO units were taken up by insurers, strategic capital investors, and securities firms, while CapitaLand Investment retained a 20% stake in the REIT. Demand from institutional investors was particularly strong, with offline subscriptions oversubscribed by 254.5 times. Retail subscriptions also recorded significant interest, reaching 535.2 times oversubscription. This response reflects CapitaLand Investment's domestic-for-domestic fund strategy, which aims to tap onshore capital to grow assets under management and enhance recurring fee income.
Trading for CLCR is expected to commence by the end of this month, making it China's first internationally sponsored retail real estate investment trust (REIT). This development is a milestone for foreign-backed REITs entering the Chinese market and demonstrates the growing acceptance of structured real estate investment products among local investors. By leveraging both institutional and retail participation, CLCR positions itself to strengthen CapitaLand Investment's footprint in China while providing investors with access to a diversified portfolio of commercial properties.
Source- Reuters
5th Jun, 2025
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