SINGAPORE – Singapore-listed CapitaLand Investment (CLI) raised US$320 million (S$403 million) for its Asia-Pacific real estate credit fund, completing a fundraise for the firm controlled by Temasek.
ACP II attracted a diverse pool of investors, primarily from Asia Pacific, including both new and existing partners, according to a statement on April 13. CLI committed 20 per cent as a sponsor.
The fund has already been allocated to five first mortgage loans across logistics, office and living assets in Sydney and the Seoul Metropolitan Area as part of its plan to scale its asset-light fund management platform, the release said.
The latest pool is the second in its flagship regional credit series and adds about US$600 million to its funds under management. The strategy focuses on senior secured investments, positioning it defensively at a time when broader segments of the credit market face increasing stress. Backed by tangible collateral, real estate credit has gained traction for its ability to provide downside protection, helping drive continued institutional demand. The fundraise also comes against a backdrop of tightening bank lending conditions and growing demand for flexible capital solutions.
“Our disciplined focus on senior secured, asset-backed investments positions us away from the challenges currently facing the wider credit sector,” Kishore Moorjani, chief executive officer of alternatives, private funds, said in the statement.
Real estate-backed lending in Asia remains underpenetrated, accounting for just 6 per cent of total financing, well below levels seen in Europe and the United States, according to the statement. The final close of CapitaLand Asia Pacific Credit Program II underscores how investor appetite for tangible collateral such as real estate continues to attract institutional capital seeking stability in uncertain markets. APAC fundraising reached US$11.2 billion between 2020 and 2024, up more than 40 per cent over the previous five-year period, the statement said.
CLI’s real estate credit platform has deployed over S$10 billion across Asia Pacific with Wingate Group Holdings. The acquisition of Wingate, one of Australia’s largest private credit managers, has expanded its reach across high-net-worth and institutional investors.
The final close of ACP II follows ACP I, CLI’s inaugural credit programme, which invested about A$265 million (S$237.7 million) in two prime mixed-use developments in Melbourne and Adelaide. BLOOMBERG
