Lee Chee Koon, group CEO of CapitaLand Group. (bloomberg)
Lee Chee Koon, group CEO of CapitaLand Group. (bloomberg)

CapitaLand completes $8 bn acquisition of Ascendas-Singbridge

  • Deal creates one of Asia’s largest realty groups with S$123 bn of assets under management
  • Starting 1 July, the CapitaLand Group will operate as a unified entity with merged capabilities

Singapore-based investor CapitaLand Ltd on Sunday said it has completed the purchase of Temasek Holdings-owned Ascendas-Singbridge Pte. Ltd.

The deal creates one of Asia’s largest diversified real estate groups with over S$123 billion of assets under management (AUM).

Starting 1 July, the CapitaLand Group will operate as a unified entity with combined competencies and scale, the company said on Sunday.

In January, CapitaLand had said it will acquire Temasek-owned Ascendas-Singbridge’s stakes in two of Ascendas-Singbridge’s subsidiaries, in a cash-and-stock deal worth S$11 billion ($8 billion).

With the transaction complete, Temasek, which held a 40.8% stake in CapitaLand before the deal, now holds about 51% in the company.

With Ascendas-Singbridge’s early-mover advantage in India where it has AUM of S$2.6 billion across sectors, the country will become an important market for the combined group as it further develops these new economy sectors.

CapitaLand Group’s enhanced real estate value chain and enlarged global network of commercial, retail; business park, industrial and logistics; integrated development, urban development; residential; lodging; as well as fund and asset management businesses spans over 30 countries across more than 200 cities," the company said in a statement.

Lee Chee Koon, group CEO of CapitaLand Group, said: “The completion marks the coming together of two leading real estate players as one unified entity. As an enlarged Group, we possess fully integrated capabilities in four core markets—Singapore, China, India and Vietnam, while building greater scale in developed markets. With more asset classes in these markets, we will go further to achieve transformational growth. Diversifying our portfolio to new economy sectors such as business parks, logistics and industrial properties, will give us added competitive edge via a bigger global network of touch points."

Singapore-based investors and developers have over the years gained a firm foothold in India’s property market and are now venturing beyond commercial offices to bet on emerging sectors such as logistics, warehousing and urbanization projects.

Led by the Integration Management Office, the integration teams have been working closely to achieve operational readiness for CapitaLand Group by 1 July.

The expanded entity will leapfrog CapitaLand’s 2020 assets under management target of S$100 billion, putting it among the top 10 real estate investment managers globally and making it the manager of the three largest real estate investment trusts (REITs) listed on the Singapore Exchange—Ascendas Real Estate Investment Trust, CapitaLand Mall Trust and CapitaLand Commercial Trust.

“For its commercial, retail; business park, industrial and logistics; integrated development, urban development; and residential businesses, the enlarged Group is organised along geographical lines covering Singapore, China, India, Vietnam and other developed markets. The lodging business as well as the fund and asset management business are organized as stand-alone sectors," the statement said.

Other than Ascendas-Singbridge, which will now be part of the newly merged CapitaLand Group, some of the prominent Singapore investors who have gained a foothold in India include GIC Pte. Ltd, Xander, and more recently, Mapletree Investment Pte. Ltd.

They are known for their interest in commercial office assets and sunshine sectors like logistics and warehousing, and for their patient capital and long-term investment outlook.

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