CLI to divest Beijing asset in 2.4 billion yuan joint venture with AIA

CAPITALAND Investment (CLI) is divesting a 95 per cent stake in Capital Square Beijing to AIA Life Insurance through a 2.4 billion yuan (S$447 million) joint venture set up with the Hong Kong-based insurance group.

Under the partnership, CLI will retain a 5 per cent interest in Capital Square Beijing, while providing asset management services for the joint venture.

This is expected to contribute to CLI’s recurring fee income, said the real estate investment manager on Wednesday (Jan 31).

Puah Tze Shyang, CLI’s chief executive for China, noted that the transaction marks the second time CLI has partnered AIA in China. AIA had invested in one of its yuan-denominated funds in 2022.

“We remain focused on being asset light and capital efficient, while continuing to scale up our fund management business,” he added.

Capital Square Beijing is a Grade A office building located in Beijing’s Chaoyang District, with a total above-ground gross floor area of 44,759 square metres.

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It was acquired by CLI in October 2022 through a court auction. Subsequently, it underwent an asset enhancement initiative to upgrade the building’s facilities, revitalise its tenant mix and improve its operational efficiencies.

Shares of CLI ended S$0.01 or 0.3 per cent lower at S$2.96 on Wednesday.