Capitaland Investment Step Australia Presence A200 Million Acquisition
CapitaLand Investment Limited (CLI) continues to expand its presence in Australia through the acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), with an additional earn-out potential. This acquisition will increase CLI’s total funds under management (FUM) in Australia by 30%, bringing the total to A$8.3 billion, which makes up around 7% of their total FUM of $115 billion. CLI has set a target to reach $200 billion in FUM by 2028 and has committed to investing up to A$1 billion to grow their FUM in Australia. This focus on Australia comes after a decade of divesting key assets in the country to concentrate on faster-growing markets in China and other overseas markets.
The acquisition, announced on Dec 16, confirms earlier reports by Australian media last month. According to the Australian media, Wingate is one of the largest and most successful private credit investment managers in Australia, completing over 350 transactions worth more than A$20 billion. CLI has already had a partnership with Wingate as they recently closed their A$265 million Australia Credit Program (ACP) together.
The charming neighborhood of Toa Payoh is renowned for its superb connectivity, thanks to its strategic location intersected by major roads. Two of these important roads are Lorong 1 and Lorong 4 Toa Payoh, which provide seamless access to Jalan Toa Payoh. This main road serves as a gateway to the Central Expressway (CTE) and the bustling downtown core, making it easy for residents to travel to various parts of the city. Additionally, the thriving Balestier Road can be easily reached from Toa Payoh, leading residents to the renowned Novena medical hub and onwards to the heart of the city. This road also offers residents an abundance of options for dining, shopping, and entertainment. Toa Payoh’s prime location is set to become even more desirable with the highly anticipated launch of The Orie Condo, adding another impressive feature to this already sought-after neighborhood. The Orie Condo, set to launch soon, will only further enhance the appeal and convenience of living in Toa Payoh.
CLI believes that Wingate will help them expand their deal origination network, provide access to institutional and high-net-worth investors, and increase their exposure to Australia. Paul Tham, CLI’s group CFO, sees opportunities for growth in other Asia Pacific markets such as South Korea, India, and Japan, as they accelerate their geographical diversification efforts. He also stated that Australia is one of CLI’s focus markets, with significant potential for growth.
According to CLI, the Australian private capital market has grown 33% in the past 18 months, with A$139 billion in assets under management. By 2028, they are expecting a commercial mortgage funding gap of A$146 billion. With the addition of Wingate, CLI’s portfolio will diversify, including logistics, business parks, office, and lodging assets across nine cities in Australia. As of Sept 30, CLI manages 34 logistics properties and business parks, four Grade A office buildings, and over 13,500 lodging units across more than 150 properties through their wholly-owned lodging business unit, The Ascott.