CapitaLand, Thai developer launch up to $730 million healthcare-related fund

SINGAPORE : Singapore-based real estate firm CapitaLand Investment and Thai property developer Pruksa Holding said they have set up an up to S$1 billion ($730.4 million) wellness and healthcare-related real estate fund targeting Southeast Asia.

The companies have together committed an initial equity investment of S$350 million to the fund, called CapitaLand Wellness Fund, according to a joint statement on Tuesday.

The fund’s target equity size was S$500 million, with an option to upsize to S$1 billion in equity and target asset value of S$2.9 billion when fully deployed, it said.

The setting up of the fund comes against the backdrop of a growing ageing population and rising healthcare spending in Southeast Asia.

“This is an opportune time to expand our footprint into wellness and healthcare-related real estate in Southeast Asia, one of the fastest growing regions in the world,” Patricia Goh, CEO, Southeast Asia Investment at CapitaLand Investment, said.

CapitaLand Wellness Fund marks the second jointly established fund by the companies after the launch of the CapitaLand SEA Logistics Fund last year.

It will be anchored in Southeast Asia with an initial focus on Singapore, Thailand and Malaysia, and target investments in single or mixed-used assets across the wellness spectrum ranging from residential to hospital facilities, the statement said.

The fund will also have an allocation for relevant strategic development opportunities in the Asia Pacific region, it added.

($1 = 1.3692 Singapore dollars)