CAPITALAND on Monday said it aims to redeploy part of the capital from asset recycling to new economy assets such as business parks, logistics and data centres. This would grow its China exposure in the sector to S$5 billion over the next few years, from S$1.5 billion.
According to the property giant, tenants from this sector typically enjoy"robust fundamentals and a supportive regulatory environment". It added that this target is in tandem with the group's strategy to ride on China's economic transformation focusing on technology, services and domestic consumption.
As part of CapitaLand's active recycling, CapitaLand Retail China Trust has been designated the group's real estate investment trust platform for non-lodging assets in China, with access to CapitaLand's pipeline in the country. CRCT will also continue to explore opportunities from third parties and acquire from the market, CapitaLand noted. Over time, CRCT plans to have a target portfolio mix of 40 per cent in integrated developments, 30 per cent in retail and 30 per cent in new economy.