Singapore’s CapitaLand has a agreed an S$11bn (€7.08bn) deal to buy Ascendas-Singbridge’s (ASB) property fund management business.
ASB, majority-owned by state-owned Temasek, is selling Ascendas (APL) and Singbridge (SB) in a deal which will lift CapitaLand’s S$92bn portfolio to more than S$116bn.
The acquisition will also expand CapitaLand’s asset classes to include logistics/business parks, industrial, lodging, commercial, retail and residential into more than 180 cities across 32 countries.
CapitaLand said Temasek will receive S$6.0bn, which will be paid 50% in cash and 50% in new CapitaLand shares. Following the acquisition, Temasek’s ownership of CapitaLand will increase from 40.8% to around 51.0%.
Ng Kee Choe, the chairman of the board of CapitaLand, said: “This transaction represents a compelling opportunity to realise benefits not available to each company on a standalone basis; we will have more opportunities to create enhanced value for our shareholders.
“And with multiple platforms across the various sectors and geographies, we will be able to offer attractive career opportunities for our staff.”
Wong Kan Seng, the chairman of Ascendas-Singbridge, said: “The combined scale and expertise of the group will enable it to better capitalise on the opportunities arising from the rapid pace of urbanisation in the region.”
Lee Chee Koon, the president and group CEO of CapitaLand, said: “Geographically, the deal strengthens CapitaLand’s presence in our core markets of Singapore and China, while adding meaningful scale in India, US and Europe.
“This deal immediately adds a portfolio of operating assets that contribute income today, while adding a sizeable pipeline of development projects for the future.”
Miguel Ko, an executive director and group CEO of Ascendas-Singbridge, said: “With almost two-thirds of our AUM under fund management, ASB’s established fund management business will be contributing a meaningful proportion of recurring fee income to the group.”
ASB has interests in, and also manages three listed trusts, namely Ascendas Reit, Ascendas India Trust and Ascendas Hospitality Trust.
The transaction is expected to be completed by third quarter of the year, subject to approval by CapitaLand’s independent shareholders.