Deal would make CapitaLand the largest diversified real estate company in Asia

The Singapore-based company has agreed to pay S$6 billion ($4.4 billion) for two units of Temasek Holdings

National /
Jan.January 26, 2019 01:00 PM

(Credit: Pixabay, LinkedIn)

A major acquisition would make Singapore-based CapitaLand Ltd. the largest diversified real estate company in Asia, according to the company’s new chief, Lee Chee Koon.

Lee, 43, has led CapitaLand into new markets including the United States and Europe since he became the chief executive of the Singapore-based company in September.

But CapitaLand’s most transformative deal under Lee’s leadership would be its planned acquisition of subsidiaries of Temasek Holdings Pte for S$6 billion ($4.4 billion).

CapitaLand agreed to pay a combination of cash and new stock for two units of Temasek, Ascendas Pte and Singbridge Pte, which would increase its assets to more than $116 billion across 180 cities in 32 countries.

The pending Temasek deal would benefit CapitaLand not only by increasing its assets under management but also by diversifying its geographic exposure to risk, said Marc Tan, a research analyst at KGI Securities Pte.

The deal would reduce the share of CapitaLand’s assets under management in China to 41 percent from almost 50 percent while substantially increasing CapitaLand’s presence in India.

“Ascendas will give CapitaLand access to the fast-growing business park and logistics market in India with its S$2.6 billion of assets,” Lee told Bloomberg.

Prior to its Temasek deal, CapitaLand entered the U.S. market by spending $835 million to acquire 16 multifamily properties in September.

In November, CapitaLand and Singapore’s sovereign wealth fund together paid 12.8 billion yuan ($1.8 billion) to acquire the tallest twin towers in Shanghai. [Bloomberg]Mike Seemuth


Related Articles

arrow_forward_ios
1600 Northeast 12th Terrace
Triangle Services pays $17.5M for Fort Lauderdale industrial building
Triangle Services pays $17.5M for Fort Lauderdale industrial building
From left: Sotheby’s Daniel de la Vega and Reagan Jefferies with Brevard County
One Sotheby’s picks up Brevard County brokerage
One Sotheby’s picks up Brevard County brokerage
Link Logistics' Luke Petherbridge with 115.7-acre site at 21001 Northwest 27th Avenue (LinkedIn, Google Maps)
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
Blackstone’s Link Logistics pays $291M for Calder’s horse racing track
EverWest Real Estate Investors' Rick Stone and Tyler Williams; rendering of the newly built industrial property at 10900 Northwest 146th Street in Hialeah Gardens (Commercial Property Group, EverWest Real Estate Investors, iStock)
EverWest buys Hialeah Gardens industrial building for $43M
EverWest buys Hialeah Gardens industrial building for $43M
First Industrial Realty's Peter E. Baccile with 1801 North Andrews Avenue (First Industrial Realty Trust, Colliers, iStock)
First Industrial picks up Pompano Beach manufacturing facility for $25M
First Industrial picks up Pompano Beach manufacturing facility for $25M
10181 US Highway 98 West and 39 Sandy Dunes Circle (LoopNet)
Florida Panhandle estate sold for $25M
Florida Panhandle estate sold for $25M
Netscape co-founder Jim Clark and 2000 South Ocean Boulevard in Manalapan (Getty, Sotheby's)
Manalapan compound poised to sell for Florida-record $175M
Manalapan compound poised to sell for Florida-record $175M
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...