CapitaLand Investment and Thai developer to set up S$1 billion healthcare and wellness fund
Ry-Anne Lim
CAPITALAND Investment (CLI) has partnered Thai real estate developer Pruksa Holding (PSH) to set up a healthcare and wellness fund to the tune of S$1 billion.
The two parties have so far committed a total initial investment of S$350 million to the CapitaLand Wellness Fund (C-Well), which has funds under management of S$1 billion. The target equity size is S$500 million, though there is an option to raise that to S$1 billion when more investors get on board, said the two companies in a statement on Tuesday (Oct 31).
They are targeting to achieve an asset value of S$2.9 billion when the fund is fully deployed. C-Well is also expected to add S$1 billion to CLI’s funds under management, said the companies.
This is CLI’s second partnership with PSH, following the launch of their S$1 billion logistics fund in December 2022.
C-Well will be anchored in South-east Asia, with an initial focus on Singapore. It will target investments in single or mixed-use assets across the wellness industry, including residential, lodging, senior living, clinics, medical suites, hospital facilities and wellness or lifestyle-oriented living solutions.
It will also have “an allocation for relevant strategic development opportunities in the Asia-Pacific region” and take an “operator-agnostic approach” to its investments to ensure its assets reach a broader and more diverse user base.
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CLI and PSH noted the significant rise in demand for wellness-related services and assets in the region, with the emergence of an economy catering to the needs of older people.
By 2030, Singapore and Thailand are expected to become super-aged societies; those aged 65 years and up are likely to account for more than a fifth of the population, both sides said. “These trends contribute to a defensive and inflation-resistant wellness and healthcare sector, offering attractive opportunities that deliver value for investors and improve overall societal well-being.”
Patricia Goh, chief executive officer of CLI South-east Asia Investment, noted that CLI will maintain a sponsor stake in the new fund, in light of its asset-light strategy.
This means contributing to C-Well’s funds under management and fee-related earnings while offering investors an opportunity to participate in “this nascent sector with tremendous potential”, she said.
“Our partnership with PSH will strengthen our operating capabilities and resources as we scale up this new platform to deliver high-quality returns,” she said.
Shares of CLI closed at S$2.94 on Tuesday, up 1 per cent or S$0.03, before the announcement.
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