CapitaLand Commercial C-Reit’s public offer 535 times subscribed; 2.29 billion yuan raised from its Shanghai IPO

[SINGAPORE] CapitaLand Investment (CLI) on Friday (Sep 12) announced that the public tranche of CapitaLand Commercial C-Reit’s (CLCR) Shanghai initial public offering (IPO) closed ahead of schedule and was 535.2 times subscribed.

Meanwhile, CLCR achieved a subscription coverage of 254.5 times from offline institutional investors for the bookbuilding tranche. This marked a record high among retail China real estate investment trusts (C-Reits) in the country, said CLI, the sponsor and asset manager of CLCR.

With this, CLCR has raised 2.29 billion yuan (S$409 million) from its IPO, having issued 400 million IPO units at a price of 5.718 yuan per unit.

As joint strategic investors of CLCR, CLI, CapitaLand China Trust (CLCT) and CapitaLand Development will collectively hold 20 per cent of its IPO units.

Excluding this, majority of the remaining units were snapped up by insurance companies, strategic capital investors and securities firms, said CLI.

Cornerstone investors took up 40.11 per cent of the units while offline institutional investors were allotted 27.92 per cent in the bookbuilding tranche, the asset manager said. The remaining 11.97 per cent was subscribed by retail and institutional investors in the public tranche.

CLCR is expected to commence trading on the Shanghai Stock Exchange under the ticker code 508091 by end September 2025.

As China’s first international-sponsored retail C-Reit and CLI’s eighth listed fund, it complements CLCT – the asset manager’s Singapore-listed fund for international investors looking to invest in China.

CLI said that CLCR is set to expand its Reit management platform into China while strengthening its position as Asia Pacific’s largest Reit manager by market capitalisation.

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“The listing of CLCR is part of CLI’s capital recycling strategy to enhance its balance sheet and redeploy capital in strategic opportunities across China. It also aligns with CLI’s domestic fund strategy to tap onshore capital and grow its funds under management and recurring fee income,” CLI said.

CLCR’s initial portfolio focuses on high-quality income-producing retail assets in top-tier cities and comprises two malls with a combined value of around 2.6 billion yuan.

The malls are CapitaMall SKY+ in Guangzhou, located in the city’s Baiyun Central Business District, and CapitaMall Yuhuating in Changsha, in the city’s Yuhua District.

They have a total gross floor area of 168,405 square metres. Their overall occupancy rate stood at 96 per cent as at Mar 31, 2025.  

CLI will continue to operate CapitaMall SKY+ and CapitaMall Yuhuating after CLCR’s listing.

CLI shares ended Thursday flat at S$2.77 and CLCT shares closed Thursday unchanged at S$0.79.