CapLand China T (AU8U.SI) saw its stock soar by 3.23% in intraday trading on Thursday, following news that CapitaLand Investment (CLI) is launching its first real estate investment trust (REIT) in China. The new REIT, to be named CapitaLand Commercial C-Reit (CLCR), marks a significant expansion of CapitaLand's presence in the Chinese market.
CLCR will be seeded with two mature assets: CapitaMall SKY+ in Guangzhou and CapitaMall Yuhuating in Changsha. These properties have a combined value of approximately 2.8 billion yuan (S$499 million) and boast a total gross floor area of 168,405 square metres. With an aggregate committed occupancy rate of 97%, these assets provide a strong foundation for the new REIT.
The launch of CLCR aligns with CLI's strategy to pursue asset-light growth and expand its presence in China by tapping into domestic capital. This move is expected to strengthen CLI's listed funds platform and broaden its access to perpetual domestic capital. For CapitaLand China Trust (CLCT), which currently owns CapitaMall Yuhuating, this development offers an opportunity to diversify its income and enhance its portfolio quality. The positive market reaction to this news suggests that investors are optimistic about the potential benefits for CapLand China T and the broader CapitaLand group.
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