Singaporean headquartered real estate group CapitaLand Investment (CLI) has agreed to acquire smaller peer SC Capital Partners (SCCP).
The deal involves CLI acquiring an initial 40% stake in the S$11bn (€7.7bn) real estate manager for S$280m, with conditional options to purchase two additional 30% stakes on the third and fifth anniversaries of the transaction closing.
CLI has also committed to investing at least S$524m in SCCP’s fund strategies to drive the platform’s growth. CLI’s investment in SCCP is expected to scale up CLI’s listed and private funds management capabilities and expand its network and capabilities across key Asia Pacific markets and sectors including hospitality, living and renewables.
The tie-up, which will deepen CLI’s presence in Japan, will also pave CLI’s entry into the Japan real estate trust (REIT) market, and it will gain the management of SCCP’s Japan Hotel REIT.
CLI said the funds under management CLI’s listed funds will grow from S$63bn to S$69bn while the market capitalisation of its managed REITs and business trusts will increase from over S$30bn to S$35bn.
Lee Chee Koon, group CEOat CLI, said: “This acquisition is one of the strategic thrusts to scale up our capabilities and build bench strength across our focus markets, accelerating CLI’s growth as a global real asset manager to create greater value for our stakeholders.”
Lee said the two firms had complementary portfolios and geographic presence across the Asia Pacific region.
Suchad Chiaranussati, chairman and founder of SC Capital Partners Group, said: “Our strategic partnership with CLI will enable SC Capital Partners to gain access to additional resources, enabling us to accelerate capital deployment and achieve scale, which is becoming increasingly important.”
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