🏢 CapitaLand’s Ascott Eyes Bigger Stage as CLI Scales Fund Management in China

SGX:C38U (CapitaLand Investment Limited – CLI)

When CapitaLand restructured in 2021, carving out CapitaLand Investment (CLI) to focus on real asset management (RAM), many questioned the inclusion of The Ascott Limited. At the time, Ascott was evolving from an asset-heavy model to an asset-light, fee-based lodging management business. Fast-forward to 2025, Ascott has transformed, with 92% of its units now under management or franchise contracts, contributing recurring fee-related earnings (FRE) on long-term agreements.

CLI aims to grow Ascott’s FRE from $343 million in FY2024 to $500 million by 2028. CEO Lee Chee Koon suggests a separate listing for Ascott could be on the table, possibly in New York or Hong Kong, though he acknowledges Singapore’s need for a strong blue-chip IPO. Analysts are split—some prefer keeping Ascott in-house; others see value in spinning it off while retaining CLI’s majority control.

SGX:C38U (CapitaLand Investment Limited – CLI)

CLI is also expanding its footprint in China’s domestic capital markets. On May 21, it announced the launch of its first onshore RMB master fund, the CLI RMB Master Fund, with an equity commitment of RMB5 billion (S$921 million). A major Chinese insurance firm is the anchor investor.

The fund will invest in sub-funds targeting business parks, rental housing, retail and serviced residences, and may expand into data centres, logistics parks, and offices. CEO of CLI China, Puah Tze Shyang, says this strategy aligns with rising real estate allocations by domestic insurers and has helped CLI raise RMB54 billion across seven RMB funds since 2021.

CLI also plans to launch its first China-listed REIT, CapitaLand Commercial C-REIT (CLCR), with CapitaMall Yuhuating and CapitaMall Sky+ as seed assets.

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