CapitaLand Investment Limited - Annual Report 2021

FY 2021 Performance Review BUSINESS PERFORMANCE China With more than 25 years of operating experience in China, CLI is one of a handful of real estate players that offer a full suite of real estate capabilities across multiple real estate sectors. Our business operations are focused in first- and second-tier Chinese cities, in five core city clusters1 benefiting from strong urbanisation trends. CLI has more than 5,200 employees in China in the CapitaLand Ecosystem. Our strong deal sourcing capabilities and real estate expertise equip us well to build up the investment pipeline for CLI and our funds platform, as well as enhance value of our portfolio assets through proactive asset management to ensure their continued relevance. Key Project Completion in 2021 Raffles City The Bund In July 2021, we opened CLI’s third Raffles City integrated development in Shanghai and tenth globally. Named Raffles City The Bund (RCTB), the property is the tallest twin tower in Shanghai, offering a 270-degree panoramic view of Shanghai Bund and Shanghai’s Lujiazui CBD. The development is a 50:50 joint venture between Raffles City China Investment Partners III and GIC. The asset’s committed occupancy was 93%as of December 2021, represented by over 200 brands, of which more than half were new offerings which were not previously present in Shanghai or within CLI’s portfolio. Key Transactions in FY 2021 Acquisition of Shanghai Zhuanqiao Data Centre in Minhang, Shanghai, China • CLI’s first hyperscale data centre campus was acquired for RMB3.66 billion (S$757.7 million). • This transaction allowed CLI to expand into one of the world’s largest data centre markets and reinforces CLI’s ambition to grow data centres into a global business. • The campus comprises four buildings with up to 75,000 sqm GFA and up to 55MW of IT power capacity. Shanghai Zhuanqiao Data Centre Raffles City The Bund, China Sale of Partial Stakes in Six Raffles City Developments in China • The agreed value of the portfolio — comprising Raffles City Shanghai, Raffles City Beijing, Raffles City Ningbo, Raffles City Chengdu, Raffles City Changning (Shanghai) and Raffles City Hangzhou – was RMB46.7 billion (S$9.6 billion). • Agreed value was at 6.7% premium to the FY 2020 valuation, generating an FRE/FUM ratio of 62 basis points2. • CLI retained an effective stake of 12.6% to 30% in each development and continued to be the asset manager for all six properties, earning FRE. 1 The five core city clusters are Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan. 2 Average across 2008 - 2020. FY 2021 Total Investments S$1,211 million FY 2021 Total Divestments S$10,076 million FY 2021 Investments Value (S$ million) Entity Four logistics properties in Shanghai, Kunshan, Wuhan and Chengdu 350.7 CLCT Shanghai Zhuanqiao Data Centre 757.7 CLI 50% stake in Dalian Ascendas IT Park 103.0 CLI FY 2021 Divestments Value (S$ million) Entity Somerset Xu Hui Shanghai 215.6 ART CapitaMall Minzhongleyuan in Wuhan 93.4 CLCT Partial stakes in six Raffles City China developments 9,565.1 CLI Ascott Hangzhou 201.6 CLI FY 2021 Transactions FY 2021 Performance Review BUSINESS PERFORMANCE Raffles City Hangzhou, China CapitaLand Investment Limited 50