Citic Capital Holdings has announced the first closing of its fourth fund, which aims to raise US$600 million to invest in the mainland's retail properties.
The fund completed its first closing at US$225 million on November 5, attracting institutional investors from the United States, Europe and Asia, the company said.
The fund will focus on retail property and mixed-use development with substantial retail portions in the mainland's second and third-tier cities, which offer a high potential for economic growth driven by urbanisation.
Stanley Ching, senior managing director and head of Citic Capital's property division, said he believed there were tremendous opportunities in second and third-tier cities, especially when infrastructure and transportation networks in these cities improve in the coming years.
Domestic consumption will play a more important role in China's economic growth and the retail industry will benefit from the 12th five-year plan, he said.
Citic Capital's property division has invested in 18 projects in mainland cities, with a total asset value of more than US$3 billion.