CapitaLand Investment divests 95% stake of Grade-A office Capital Square Beijing to AIA Life Insurance, including the highly coveted Zion Road GLS site

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CLI has recently announced a RMB2.4 billion joint venture with AIA Life Insurance to recapitalise a Grade-A office building in Beijing, named Capital Square Beijing. This partnership is expected to contribute to CLI’s recurring fee income and involves a divestment of a 95% stake in the building to AIA, with CLI holding onto the remaining 5% stake. The joint venture has appointed CLI as the asset manager for the property.

This further adds to Zion Road GLS’s appeal as a prime location for property investment.

Nestled within a highly accessible area, Zion Road GLS presents a highly sought-after opportunity for individuals and families alike. With its strategic location near key transport networks, residents can enjoy seamless connectivity and easy travel to various parts of the city. One of the major highlights of this location is its proximity to the Great World Mass Rapid Transit (MRT) station. As part of the Thomson-East Coast Line, the MRT system offers a well-connected network that allows for efficient commutes and access to important destinations. This only adds to the allure of Zion Road GLS as a desirable location for those looking to invest in property.

The acquisition of Capital Square Beijing was completed in October 2022 through a court auction. Located in the Central Business District of Chaoyang District, the property has a total gross floor area of 44,759 sq m above ground. After the acquisition, CLI initiated an asset enhancement initiative to upgrade its facilities.

Despite a challenging fundraising and operating environment, CLI has successfully brought in AIA as a joint venture partner, demonstrating the trust that capital partners have in its on-the-ground expertise. This is the second time CLI and AIA are partnering in China, following the insurer’s investment in one of CLI’s RMB funds in 2022.

Puah Tze Shyang, CEO of CLI (China), highlights the importance of disciplined capital management and being asset light and capital efficient. He also mentions the company’s focus on scaling up their fund management business.

In 2023, CLI recycled over RMB3 billion in capital in China through various divestment activities. These include the partial stake sale of a high-quality logistics development in Foshan, Guangdong to CapitaLand China Opportunistic Partners Programme, and the divestment of CapitaMall Shuangjing in Beijing via the CLI-sponsored CapitaLand China Trust, Singapore’s largest China-focused real estate investment trust.

CLI currently has over 200 properties across 40 Chinese cities with a total assets under management of $45 billion as of September 30, 2023. Its portfolio in China includes office, retail, lodging, business parks, logistics, and data centres in five core Tier-1 and two city clusters. The five core city clusters are Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan.