Singaporean investor CapitaLand Ltd announced on Sunday that it had completed the purchase of Ascendas-Singbridge Pte by Temasek Holdings. Ltd.
The deal has created one of the largest diversified real estate groups in Asia with over $ 123 billion under management (AUM).
From July 1, the CapitaLand Group will act as a unique entity with combined competencies and scope, the company said on Sunday.
In January, CapitaLand announced that it would buy Ascendas-Singbridge's stake owned by Temasek in two subsidiaries of Ascendas-Singbridge in a $ 11 billion worth of $ 11 billion cash and value contract.
After the transaction was completed, Temasek, who previously had a 40.8% stake in CapitaLand, now holds about 51% of the company.
With Ascendas-Singbridge in India, with AUM of $ 2.6 billion per sector, the country will become an important market for the combined group as it will further develop these new economy sectors.
"Increased property value chain in CapitaLand Group and expanded global network of retail, retail; business park, industry and logistics; integrated development, urban development; housing; accommodation; as well as fund and property management companies cover more than 30 countries in more than 200 cities, "the company said in a statement.
Lee Chee Koon, Executive Director of CapitaLand Group, said: "The ending marks the gathering of two leading real estate players as a unique entity. As an expanded group, we have fully integrated capabilities on four core markets – Singapore, China, India and Vietnam, while increasing the scale in developed markets. With more asset classes in these markets we will go further in order to achieve transformational growth. Diversification of our portfolio into new sectors of the economy, such as business parks, logistics and industrial properties, will give us additional competitive edge through a larger global touch network.
Singapore investors and investors have gained a strong foothold in the Indian real estate market over the years and now go outside of commercial offices to bet on new sectors such as logistics, warehousing and urbanization projects.
Introduced by the Integration Management Office, integration teams worked closely to achieve operational readiness for the CapitaLand group by July 1st.
The expanded entity will skip CapitaLand's $ 100 billion management for 2020, classifying it among the top ten global property investment managers and making it the manager of the three largest real estate investment funds (REITs) located on the Singapore Stock Exchange – Ascendas Real Estate Investment Fund, CapitaLand Mall Trust and CapitaLand Commercial Trust.
– Because of its commercial commerce; business park, industry and logistics; integrated development, urban development; and resident companies, expanded a group organized on geographic lines covering Singapore, China, India, Vietnam and other developed markets. Housing, as well as fund and property management, are organized as standalone sectors, "said the press release.
Apart from Ascendas-Singbridge, which will now be part of the newly-joining CapitaLand group, some of the prominent Singapore investors who have gained base in India include GIC Pte. Ltd, Xander, and recently Mapletree Investment Pte. Ltd.
They are well-known for the commercial office and solar sector assets such as logistics and warehousing and for patient capital and long-term investments.