CapitaLand’s $11 B Coup: Shedding Old Skin and Growing a Beast
What’s Happening and Why It Matters
CapitaLand, the Singapore stalwart, has just swooped up Temasek‑owned Ascendas‑Singbridge (ASB) for a hefty $11 billion (debt included). The move turns the company into Asia’s biggest mixed‑use real estate juggernaut.
Size, Spread and Numbers that Make Your Head Spin
- Combined assets under management (AUM) now top $116 billion.
- Portfolio stretches over 30+ countries and spans logistics, industrial, lodging, commercial, retail and residential venues.
- CapitaLand beats its 2020 AUM goal of $100 billion, catapulting it into the world’s top ten real‑estate managers.
How the Deal Feels. Temasek’s Share & the $6 B Sweetener
- Temasek receives $6 billion – split: half in cash, half in fresh CapitaLand shares.
- With the new shares, Temasek’s stake jumps from ~40.8 % to roughly 51 % once the deal closes.
- Ascendas‑Singbridge’s enterprise value sits at around $10.9 billion: $6 billion equity, $4.9 billion net debt.
Share Price at a Glance
The freshly issued CapitaLand shares go for $3.50 each – that’s an 11.3 % premium (about $0.36 higher) over the one‑month average price of $3.1447.
ASB’s Assets & Portfolio Snapshot
- Headquarters: Singapore.
- Operations in 11 nations – Singapore, China, India, Australia, the UK, the U.S., and more.
- Over 80 % of its $23.6 billion AUM is business space.
- Flagship sites: Singapore Science Park, Changi Business Park, Bangalore IT Park, Chennai IT Park, Dalian IT Park, Singapore Hangzhou Tech Park.
Why Everyone’s Greedy for More Footprint
CapitaLand & ASB’s joint statement highlights:
- Global presence with over 60 million sq‑ft of development pipeline.
- Singapore properties hit $38.6 billion (33 % of AUM).
- China’s real‑estate value climbs to $48.2 billion (41 % of AUM).
Logistics & Data Centres: A New Floor‑Number Frenzy
- CapitaLand will now own more than 100 logistics/Business Park and data‑center properties.
- Across India, the $2.6 billion AUM base grows, with a-iTrust powering income from Indian business space.
- U.S. arm added 33 suburban office assets in Portland, Raleigh & San Diego.
- Europe: Ascendas Reit seized 38 U.K. logistics buildings last year.
CBD & Suburban Office Count Rising to Power‑Up
From 39 to 83 offices spread across 10 countries, covering nearly 27 million sq‑ft of gross floor area.
Income Boost: Add 40 % to the Bucket
CapitaLand expects pro‑forma fee income to jump from $238 million to $337 million – that’s a 40 % lift.
Words from the Top Brass
Lee Chee Koon (CapitaLand President & CEO): “This deal bolsters our core markets in Singapore & China, while blazingly scaling in India, the U.S., and Europe. It brings ready‑to‑rent assets that churn cash now, and a pipeline that’ll keep the engine running long-term. We’re building a diversified, resilient portfolio that’ll deliver sustainable returns above our cost of equity.”
Wong Kan Seng (ASB Chairman): “The merged scale and expertise will let us capture the urban boom in the region. ASB’s deep ties with local governments and business communities means we can craft urban solutions tailored to each area. Cross‑pollination across assets and geographies creates a robust platform for future growth.”
What’s Next: The Deal’s Legal Road
- CapitaLand shareholders will need to approve the transaction at an extraordinary general meeting slated for the first half of 2019.
- Because Temasek will trigger a mandatory take‑over offer for the shares it doesn’t already own, a whitewash resolution will be presented to let shareholders waive their right to that offer.
- Deal completion slated for the third quarter of this year.
Source & Attribution
This story first appeared in The Straits Times. Permission required for reproduction. Business real estate.
