CapitaLand holds $556m first close for new China discretionary debt fund

CapitaLand Limited, the largest real estate manager in Asia Pacific, has held a $556 million first close for CREDO I China — the Group’s first discretionary real estate debt fund. The fund, with a target capital raise of $750 million, will invest in offshore U.S. dollar-denominated subordinated instruments for real estate in China’s first- and second-tier cities. It will focus on loans and securities of real estate covering commercial, retail, residential, logistics and industrial properties.

CapitaLand has raised more than 70 percent of the total capital for CREDO I China’s first closing, with subsequent commitments from major institutional investors expected later this year. CapitaLand will hold a 10 percent stake in the fund. It is set to be one of China’s largest real estate debt funds.

Lee Chee Koon, CapitaLand’s president and group CEO, said, “CREDO I C