CapitaMalls Asia sets up $1.27b China private equity fund

SINGAPORE (REUTERS) - CapitaMalls Asia, the shopping malls arm of Singapore's CapitaLand, said on Monday it has set up a US$1 billion (S$1.27 billion) closed-end private equity fund that will invest in Chinese malls.

Outside investors will take up half the capital in the CapitaMalls China Development Fund III, while a CapitaMalls unit will subscribe for the remaining 50 per cent.

CapitaMalls will inject three seed assets worth about US$594.8 million into the fund, realising gains of some $71.8 million in the process.

CapitaMalls expects to recognise a gain arising from the transaction of $35.9 million and a fair value gain of $35.9 million on its retained stake.