CAPITALAND BIGGEST ASIA PROPERTY GROUP?
Developer agrees to buy 2 real estate holding firms from Temasek in S$11b deal
SINGAPORE’S CapitaLand said yesterday it has agreed to buy two real estate holding firms in a S$11 billion (RM33.32 billion) deal that will create Asia’s biggest property group with assets in dozens of countries.
Under the agreement, CapitaLand will acquire two units from a subsidiary of state investment firm Temasek.
If approved, the new entity will have assets under management of more than S$116 billion, including businesses, industrial parks, hotels, commercial, retail and residential properties in more than 30 countries.
The agreement was subject to approval by CapitaLand’s independent shareholders at a meeting in the first half of this year, said the group in a statement.
The company is buying the real estate units from Temasek subsidiary Ascendas-Singbridge Group, which develops towns, industrial parks, offices, hotels and warehouses across the world.
The deal comes as new CapitaLand president and group chief executive Lee Chee Koon, who took over in September, seeks to steer the company deeper into new markets.
“Geographically, the deal strengthens CapitaLand’s presence in our core markets of Singapore and China, while adding meaningful scale in India, the United States and Europe,” he said.
Payment to Temasek will be in cash and stocks.
Founded in 1974, Temasek is one of Singapore’s two main investment vehicles. It had a global portfolio worth S$308 billion as of March 31 last year.