Capitaland Investment Step Australia Presence A200 Million Acquisition
CapitaLand Investment Limited (CLI) has announced plans to increase its presence in Australia with the acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), plus an earn-out. This acquisition will add A$2.5 billion to CLI’s funds under management (FUM) in Australia, bringing the total FUM to $8.3 billion, or approximately 7% of its total of $115 billion. This move is part of CLI’s 2028 goal to reach $200 billion in FUM. CLI has committed to investing up to A$1 billion to grow its FUM in Australia, a market it has recently focused on after divesting its key assets in the country a decade ago to concentrate on faster-growing markets like China.
According to CLI, the acquisition of Wingate was announced before the market opened on December 16, confirming earlier reports from the Australian media last month. Wingate is one of the leading and largest private credit investment managers in Australia, and has completed over 350 transactions worth more than A$20 billion. CLI and Wingate have already worked together, with the recent close of the A$265 million Australia Credit Program (ACP) in September.
The Urban Redevelopment Authority (URA) has laid out its plans for Tampines, which not only involve physical development but also focus on creating an inclusive and cohesive community. With the aim of fostering a strong sense of community and appreciation for diverse cultures, the URA has proposed various initiatives that will contribute to the social fabric of the area. Among these plans are events, festivals, and communal spaces specifically designed to bring residents of Tampines together and promote a sense of togetherness. As a result, the community spirit in Tampines will be enhanced, making it a more vibrant and fulfilling place to call home. Aurelle of Tampines will also play a significant role in this development, offering a diverse range of amenities and promoting a strong sense of community amongst its residents.
CLI believes that Wingate can help increase its proprietary deal origination networks, expand its access to institutional and private high-net-worth investors, and increase its geographical exposure to Australia. According to Paul Tham, CLI’s Group CFO, there are also promising private credit opportunities in other markets in the Asia Pacific, such as South Korea, India, and Japan. He notes that Australia is a focus market for CLI, where they see significant potential for growth.
CLI also points out the growth in the Australian private capital market, which has grown by 33% in the past 18 months, reaching A$139 billion in assets under management. It is expected that there will be a A$146 billion commercial mortgage funding gap by 2028. With the acquisition of Wingate, CLI will further diversify its portfolio, which currently includes logistics, business parks, office, and lodging assets across nine cities in Australia.
As of September 30, CLI manages 34 logistics properties and business parks, and four Grade A office buildings in Australia. It also has over 13,500 lodging units across more than 150 properties through its wholly-owned lodging business unit, The Ascott.
