Singapore, 16 November 2020 – CapitaLand aims to redeploy part of the capital from asset recycling to new economy assets, growing its China exposure in this sector to S$5 billion over the next few years, from the current S$1.5 billion. Investments will include business parks, logistics and data centres, where tenants typically hail from new economy sectors that enjoy robust fundamentals and a supportive regulatory environment. This target is in line with CapitaLand’s strategy to ride China’s economic transformation focusing on technology, services and domestic consumption.
As CapitaLand continues to recycle our assets, part of the unlocked capital will be redeployed to pursue business parks and other new economy asset opportunities, which will form the pipeline for future recycling.
Mr Lucas Loh, President, China, CapitaLand Group, said: “Even before the pandemic, CapitaLand has been keen to broaden the Group’s exposure to new economy assets as we seek to create a balanced and diversified portfolio across asset classes and geographies. This conviction has been reinforced by COVID-19, during which we witnessed the relative resilience of new economy tenants who have been better able to withstand cyclical headwinds. In China, we continue to see many compelling opportunities in the new economy sector, whose prospects have been boosted by favourable government policies and robust demand. As CapitaLand continues to recycle our assets, part of the unlocked capital will be redeployed to pursue business parks and other new economy asset opportunities, which will form the pipeline for future recycling.”
Mr Loh added: “In line with our strategy to ramp up CapitaLand’s investments in business parks, we plan to co-invest with CRCT in Ascendas Xinsu Portfolio. This signature project will provide CapitaLand with a platform to grow our share of business park assets under management, while investing part of the recovered capital for higher returns. Located in the well-established Suzhou Industrial Park, Ascendas Xinsu Portfolio is a landmark business park development with strategic value and significant redevelopment potential. Within the portfolio, we have previously redeveloped Xinsu Square by maximising the under-utilised plot ratio, resulting in a 48% increase in gross floor area. We will progressively explore replicating the successful value creation achieved in Xinsu Square with the other buildings, in tandem with market demand.”
Located in Suzhou Industrial Park, Ascendas Xinsu Portfolio comprises six locations with 61 buildings, including business parks and industrial portion. The sprawling portfolio has a total gross floor area of 373,334 square metres.
Building on Ascendas-Singbridge’s decades-long expertise in operating business parks in China, CapitaLand has established and continues to invest in a professional and efficient property management system valued by tenants. As a testament to CapitaLand’s property management capabilities, its long-time tenants include leading multinational corporations and domestic firms that have been with its business parks for more than 15 years. Such tenancy stickiness is also attributed in part to CapitaLand’s strong operating network across geographies and asset classes, which is well-positioned to support tenants’ expansion plans and growth needs.