Bengaluru: Singapore-based CapitaLand Ltd has entered into a transaction with state investor Temasek to acquire from its subsidiary Ascendas-Singbridge Group (Ascendas-Singbridge) all the shares in two of the latter’s real estate investment trusts, in one of the largest consolidation deals in real estate globally. This will also create one of the largest diversified real estate groups in Asia.
The transaction is valued at S$11 billion and is subject to approval by CapitaLand’s independent shareholders.
Ascendas-Singbridge has already built up a S$2.6 billion assets under management (AUM) exposure in India’s business space sector and launched a-iTrust as an established vehicle to own income-producing business space assets in India. A S$400 million programme to invest in prime logistics and industrial real estate in India was also launched in June 2018.
With this early-mover advantage, India will become an important market for the combined group as it further develops these new economy sectors, the companies said in a statement on Monday.
Post transaction, the combined total AUM of the entity will exceed S$116 billion and its asset classes will include logistics and business parks, industrial, lodging, commercial, retail and residential spanning across 32 countries.
While Ascendas is entirely backed by Temasek, once the transaction closes, the latter’s ownership of CapitaLand will increase from around 40.8% to about 51.0%.
Geographically, the deal strengthens CapitaLand’s presence in its core markets of Singapore and China, and adds meaningful scale in India, US and Europe.
This immediately adds a portfolio of operating assets that contribute income today, while adding a sizeable pipeline of development projects for the future, Lee Chee Koon, President and Group CEO of CapitaLand said.
“CapitaLand is very enthusiastic about this transformational transaction and the prospect of growing the combined platforms into a leading global real estate group. Our complementary strengths position us strongly for growth amid the changing real estate environment in Singapore and internationally. With enlarged scale, expanded capabilities and resources, and a global footprint, we look forward to delivering high quality growth sustainably,” said Ng Kee Choe, Chairman of the Board of CapitaLand.