CapitaLand creates mega Asia property platform in €7.08bn deal

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. 

Related images

  • Sino-Singapore Guangzhou Knowledge City, China

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Now