In a bid to seal Asia’s largest real estate investment the Singapore’s CapitaLand is going all out to buy Ascendas-Singhbridge for worth $4.4 billion from state investor Temasek. This deal will also make CapitaLand a Singapore-based company the biggest manager in Asia’s real estate investment market.
The company is all set to purchase all the sister companies of Ascendas-Singbridge Group, that manage businesses of Ascendas Real Estate Investment Trust, Ascendas India Trust and Ascendas Hospitality Trust, to deal with cash and stock. The Ascendas-Singbridge firm is also known to manage private funds.
This will offer a bigger market to CapitaLand for highly growing technology and E-commerce sector. Apart from this, the stakes of Temasek’s firm will increase to nearly 51% in CapitaLand in case the deal closes approximately around 40.8 percent.
Lee Chee Koon, took up as CEO of CapitaLand said that we are looking for such opportunities to enhance company’s growth. The company has multiple business ventures including shopping malls, lodging, offices, homes, real estate investment trusts (REITs) and funds.
After the deal with Temasek, the CapitaLand’s profile will have logistics assets and data centres which will act as a protective shield in other segments.
In a joint statement released by Ascendas Singhbridge and CapitaLand, this expanded group will have assets under management of more than S$116 billion. This will make company, the ninth biggest global real estate investment manager and will be next to UBS Asset Management and CBRE Global Investors.
In his recent message to employees, CEO Lee said that this deal will give us an opportunity to grown in markets like India and it will come with huge promises. He also cautioned about CapitaLand continuing with the status quo.