CapitaLand to Spend $8B to Acquire Ascendas-Singbridge
CapitaLand reports that the newly formed group will have a presence in more than 180 cities across 32 countries.
SINGAPORE— CapitaLand Limited reports it has entered into an $8.1-billion deal with Temasek to acquire from its subsidiary, Ascendas-Singbridge Pte. Ltd. two wholly owned intermediary subsidiaries that will create a real estate group with combined global assets under management that will exceed S$116 billion (approximately $86 billion).
The combined real estate group’s expanded asset classes will include logistics/business parks, industrial, lodging, commercial, retail and residential. CapitaLand reports that the newly formed group will have a presence in more than 180 cities across 32 countries.
In addition, the deal will surpass CapitaLand’s Year 2020 assets under management target of S$100 billion (approximately $74 billion), putting it amongst the top 10 real estate investment managers in the world, as well as the manager of the three largest REITs listed on the Singapore Exchange—Ascendas Real Estate Investment Trust, CapitaLand Mall Trust and CapitaLand Commercial Trust.
Under the terms of the agreement, Temasek will effectively receive S$6.0 billion ($4.4 billion), 50% in cash and 50% in new CapitaLand shares. The shares will be priced at S$3.50 ($2.21) per share. Temasek’s ownership of CapitaLand will increase from approximately 40.8% to about 51.0% upon the close of the transaction.
Ng Kee Choe, chairman of the board of CapitaLand Limited, said of the deal, “CapitaLand is very enthusiastic about this transformational transaction and the prospect of growing the combined platforms into a leading global real estate group. Our complementary strengths position us strongly for growth amidst the changing real estate environment in Singapore and internationally.”
Wong Kan Seng, chairman of Ascendas-Singbridge Pte Ltd, adds, “As Asia’s leading integrated business space and innovative urbanization solutions provider, ASB’s rapidly growing business is highly complementary to CapitaLand’s. The combined scale and expertise of the group will enable it to better capitalize on the opportunities arising from the rapid pace of urbanization in the region.”
In the existing core markets of Singapore and China, CapitaLand’s assets under management will grow by 40% and 9% respectively. The value of the real estate group’s properties in Singapore will be worth S$38.6 billion ($29 billion) or 33% of the group’s AUM. This includes more than 1 million square feet of development pipeline contributed by projects such as the redevelopment of 79 Robinson Road and the mixed-use executive centre at Rochester Park. Singapore Science Park will also offer potential rejuvenation opportunities.
The value of the group’s properties in China will be worth S$48.2 billion ($35.6 billion) or 41% of the group’s AUM. This includes more than 60 million square feet of development pipeline.
Earlier this month, CapitaLand announced it had formed a 50-50 joint venture with an unrelated third party to acquire approximately 70% of Pufa Tower in Shanghai, China, for approximately S$546.3 million ($404 million). The acquisition marked the group’s first office property in Shanghai’s core Lujiazui central business district in Pudong New Area.