Mapletree, CapitaLand Consider Merger Into $150 Billion Firm

Two of the biggest real estate asset managers in Singapore could become one.

Mapletree Investments and CapitaLand Investment are purportedly considering merging into a single firm, which would create one of the top Asia-Pacific property companies with more than $150 million in assets under its belt, the Wall Street Journal reported.

The two firms could likely begin setting the stage for the merger process as early as next year, people familiar with the matter told the WSJ. Nothing has been set in stone, and it remains to be seen if a deal actually comes to fruition.

“CapitaLand Investment remains committed to delivering long-term shareholder value and routinely evaluates investment opportunities aligned with its strategy,” a spokesperson for CapitaLand said, noting that the company doesn’t comment on rumors or speculation. Mapletree Investments declined to comment, as did Temasek Holdings, the Singaporean sovereign wealth fund that owns 100 percent of Mapletree Investments and 54 percent of CapitaLand Investment.

It’s likely that the merger consideration is part of a wider trend by Temasek-owned entities to examine options for growing into larger, more internationally-focused entities. In 2023, for example, Temasek-owned Keppel Offshore & Marine and Sembcorp Marine merged to create Seatrium, which has become one of the world’s top rig builders. In 2021, CapitaLand joined its fund management and hospitality businesses as part of a broader restructuring plan.

CapitaLand Investment boasted about $90 billion in assets under management as of this August, including CapitaLand Integrated Commercial Trust, CapitaLand China Trust and CapitaLand India Trust. The company holds all types of properties, including retail, office, lodging, industrial, logistics, business parks, self-storage and data centers. Mapletree Investments had about $61.4 billion in assets under management; it also helms Singapore-listed REITs like Mapletree Logistics Trust and Mapletree Industrial Trust and nine private-equity real estate funds with a portfolio reaching across Asia-Pacific, Europe, the U.K. and the U.S.

As of the fiscal year ending March 31, Temasek’s net portfolio value was $324 billion. The firm has stakes in global giants like BlackRock, Singapore Airlines and port operator PSA International.

— Chris Malone Méndez