CapitaLand Investment Limited ( CLI ), a Singapore-based real estate investment firm, has established its first onshore master fund in China, CLI RMB Master Fund, with a total equity commitment of 5 billion yuan ( US$693.22 million ).

A major domestic insurance company has agreed to take up a majority stake in the master fund, which is in line with CLI's asset-light strategy to grow its funds under management ( FUM ). The master fund is expected to contribute 20 billion yuan to CLI’s FUM when fully deployed.

The master fund will invest in a series of sub-funds that will seek to acquire high-quality, income-producing assets with long-term growth potential. The sub-funds will invest in business parks, retail, rental housing, and serviced residences across Tier-1 and top Tier-2 cities. Future sub-funds may also invest in special opportunities in other sectors such as data centres, logistics parks, and offices.

“Leveraging our over 30 years of experience in China and deep on-the-ground expertise, our first master fund in China demonstrates CLI’s capabilities in structuring and launching a diversified suite of RMB funds tailored to domestic investors’ needs,” says CLI China chief executive officer Puah Tze Shyang.

“This allows us to tap into a rising trend of insurance companies increasing their capital allocation to real estate in China, providing them opportunities to invest in a diversified and resilient portfolio of stabilized assets with core returns. With a major domestic insurance company as a co-investor in the master fund, we are well-placed to attract other insurance firms to invest in the sub-funds and rapidly expand our domestic investor base.”

With the new fund, CLI has raised 54 billion yuan across seven RMB funds since 2021, demonstrating the strong momentum of its domestic-for-domestic fund strategy to grow FUM and recurring fee income, Puah adds.

CLI China has a portfolio of more than 300 properties across over 40 cities. This includes office, retail, lodging, business parks, logistics, and data centres in five core Tier-1 and Tier-2 city clusters.

The launch of the master fund follows CLI’s announcement in April 2025 that it has applied to list its first real estate investment trust in China, to be named CapitaLand Commercial C-REIT.

Photo: CapitaMall SKY+ in Guangzhou, currently owned by CapitaLand Investment and CapitaLand Development. ( CLI )