Investment manager

CapitaLand will restructure and launch Investment Manager

The property developer said the reorganization of its business will help “refine business focus and unlock shareholder value.”

CapitaLand will consolidate its investment management platforms, as well as its hosting business, into an investment manager to be listed on the Singapore Stock Exchange, and place its real estate development business under private ownership, which will be wholly owned by CLA Real Estate Holdings, according to a announcement Monday.

CapitaLand shareholders will receive an implied consideration of S$4.102 per share in cash and certificates, including a 1:1 matching stake in the new listed entity. CapitaLand said it would “preserve its existing ecosystem to exploit synergies and strengthen the restructured group’s competitive advantage.”

The privatized development entity will develop and incubate projects as a key pipeline source for CapitaLand Investment Management (CLIM).

Completely integrated

CLIM is expected to be the largest real estate investment manager (REIM) in Asia and the third largest listed REIM company in the world, with assets under management (AUM) of approximately S$115 billion.

It will be a fully integrated REIM with fund and property management capabilities across multiple asset classes and a range of private and listed funds. CLIM’s investment management business will be a scalable, global business focused on fee-related income (FRE) and fund AUM growth, according to the announcement.