Singapore’s CapitaLand is proposing to split its business into a publicly- listed real estate investment entity, with S$115bn (€72bn) worth of assets, and a privately-held real estate development business, under a subsidiary of Temasek.
In the restructure, a new entity called CapitaLand Investment Management (CLIM) will be created to hold its commercial and integrate assets, new economy assets and lodging business.
CLIM, expected to be listed by the end of this year, will hold the stakes in CapitaLand-managed listed REITs and business trusts, along with private funds.
It will also have within its investment portfolio more than S$10.1bn of income-generating properties.
CapitaLand’s existing development business, including masterplan and residential projects in Singapore, China, India and elsewhere in Asia, together with its development pipeline will be moved into CLA Real Estate Holdings, an indirectly fully-owned unit of Temasek, which owns 52% of CapitaLand. The assets to go under CLA have a pro forma net asset value of about S$6.1 bn.
Addressing analysts, CapitaLand’s CEO, Lee Chee Koon, said the restructuring marked another important milestone in the transformation of CapitaLand, which started two years ago with the merger with Ascendas-Singbridge in a S$11bn deal.
Lee, who will take the helm as the CEO of CLIM, said the move was aimed at sharpening the group’s focus on generating value and growth for investors.
“With a privately-held asset development business, we will be able to better ride property development cycles to optimise returns across asset classes and geographies,” he said.
Wong Kan Seng, chairman of CLA Real Estate Holdings, said: “As one of Asia’s largest diversified real estate groups, this restructuring will play a key role in setting CLIM on a focused and high growth trajectory.”
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