Plans to create Asia’s largest real estate investment manager were revealed today after Singapore’s CapitaLand said it will pay $8bn (£6.2bn) to buy logistics and industrial assets from Temasek.
The Singaporean developer is purchasing the holding companies for a combination of cash and stock from the business of the Ascendas-Singbridge Group, which manages Ascendas Real Estate Investment Trust, Ascendas India Trust and Ascendas Hospitality Trust.
CapitaLand’s president and chief executive Lee Chee Koon, who assumed the role of boss in September last year, has been ramping up the organisation’s growth operations since taking over.
Lee commented: “This deal immediately adds a portfolio of operating assets that contribute income today, while adding a sizeable pipeline of development projects for the future...This particular transaction will give us meaningful scale in key growth markets like India, which brings a lot of promise and excitement.”
The chief executive added: “The combined platforms will give us capabilities across the commercial/business space value chain, while adding a strong foothold in logistics and business parks.”
The move into logistics assets, data centres and additional international markets such as India comes as Singapore’s own housing and retail property markets face increasing challenges.
In a joint statement earlier today CapitaLand and Ascendas-Singbridge said that the enlarged group will have total assets under management of more than S$116bn (£66bn), making it the ninth biggest global real estate investment manager, just behind UBS Asset Management and CBRE Global Investors.
The deal will push CapitaLand ahead of its target to grow its assets under management to S$100 billion by 2020. JPMorgan advised CapitaLand on the deal.