CapitaLand is acquiring Ascendas-Singbridge (ASB), a subsidiary of Temasek, in a deal valued at $11 billion.

The deal will see the creation of Asia’s largest diversified real estate group.

This comes as the group’s combined total assets under management (AUM) is expected to exceed $116 billion, post transaction. It will include asset classes such as logistics/business parks, lodging, industrial, commercial, retail and residential.

The group will also “leapfrog CapitaLand’s Year 2020 AUM target of $100 billion”, placing it among the world’s top 10 real estate investment managers and the manager of the three biggest Singapore-listed real estate investment trusts (REITs) – CapitaLand Commercial Trust, CapitaLand Mall Trust and Ascendas Real Estate Investment Trust.

Under the agreement, Temasek will receive $6 billion, 50 percent of which will be in cash and the other 50 percent in new CapitaLand shares – increasing Temasek’s ownership of CapitaLand from about 40.8 percent to about 51 percent upon the close of the deal.

Headquartered in Singapore, ASB’s business presence spans 11 countries including China, Singapore, Australia, India, the United States and the United Kingdom. Over 80 percent of its $23.6 billion AUM is in business spaces, over half of which is in logistics/business parks and data centres.

Its flagship projects include Changi Business Park and Singapore Science Park in Singapore, International Tech Park Chennai and International Tech Park Bangalore in India, as well as Dalian Ascendas IT Park and Singapore Hangzhou Science and Tech Park in China.

“CapitaLand is very enthusiastic about this transformational transaction and the prospect of growing the combined platforms into a leading global real estate group,” said CapitaLand chairman of the board Ng Kee Choe.

“Our complementary strengths position us strongly for growth amidst the changing real estate environment in Singapore and internationally.”

Source: 14 January 2019, CommercialGuru