ZCZC
BCN-13
SINGAPORE-CONSTRUCTION-REAL-ESTATE
Singapore’s CapitaLand in $8 bn deal creating Asia property giant
SINGAPORE, Jan 14, 2019 (BSS/AFP) – Singapore’s CapitaLand said Monday it
has agreed to buy two real estate holding firms in a Sg$11 billion ($8.1
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
Sg$116 billion, including businesses, industrial parks, hotels, commercial,
retail and residential properties in over 30 countries.
The agreement is subject to approval by CapitaLand’s independent
shareholders at a meeting in the first half of this year, the group said 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, US
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 Sg$308 billion as of March 31,
2018.
BSS/AFP/HR/1135