CapitaLand picks up stake in two Ascendas units

BENGALURU: Singapore-based CapitaLand Ltd on Monday said it has agreed to acquire Ascendas-Singbridge (ASB) Group’s stake in two of ASB’s subsidiaries, in a cash-and-stock deal worth S$6 billion ($4.4 billion).

The value of the transaction is around S$11 billion, said a joint statement. The transaction, subject to approval by CapitaLand’s independent shareholders, will create the largest diversified real estate group in Asia.

Singapore state investor Temasek fully owns Ascendas, and holds a 40.8% in CapitaLand. After the transaction closes, Temasek’s ownership of CapitaLand will increase to about 51%.

The real estate trusts that are part of the deal include Ascendas Real Estate Investment Trust, Ascendas India Trust and Ascendas Hospitality Trust.

Ascendas-Singbridge, which has assets under management (AUM) worth S$2.6 billion in India’s business sector, had set up Ascendas India Trust to own income-producing business assets in the country. It had also launched a $400 million programme to invest in prime logistics and industrial real estate in June, 2018. With its early-mover advantage, India will become an important market for the combined group as it further develops these new economy sectors, CapitaLand and Ascendas-Singbridge said in a joint statement.