The real estate developer said the reorganization of its business will help «sharpen business focus and unlock shareholder value.»
CapitaLand will consolidate its investment management platforms, as well as its lodging business, into an investment manager that will be listed on Singapore Exchange, and will place its real estate development business under private ownership, to be fully held by CLA Real Estate Holdings, according to an announcement on Monday.
CapitaLand shareholders will receive an implied consideration of S$4.102 per share in cash and scrip, including a 1-for-1 equivalent stake in the new listed entity. CapitaLand said it would «preserve its existing ecosystem to harness synergies and strengthen competitive advantage for restructured Group.»
The privatised development entity will develop and incubate projects as a key source of pipeline for CapitaLand Investment Management (CLIM).
Fully Integrated
CLIM is expected to be the largest real estate investment manager (REIM) in Asia, and the third largest listed REIM company globally, with assets under management (AUM) of about S$115 billion.
It will be a fully integrated REIM with funds and property management capabilities across multiple asset classes and a spectrum of private and listed funds. CLIM’s investment management business will be a scalable and global business focused on fee-related Earnings (FRE) and fund AUM growth, the announcement said.
