CapitaLand’s Proposed Split Sees Overwhelming Approval
SINGAPORE – Following the announcement earlier this that CapitaLand plans to split into 2 entities, its stockholders have voted “overwhelmingly” of a US$15.9 billion deal to spin off its real estate investment management business and privatise its property development business, according to a press release published on Tuesday evening (10 August, SGT).
Over 3,400 of the real giant’s shareholders voted by proxy during a scheme meeting and extraordinary general meeting (EGM), both of which were conducted online. Overall, 97.58 percent of the shareholders consented to the split or restructuring.
“I would like to thank our shareholders for the resounding support. I am deeply humbled by and grateful for their trust. With CapitaLand’s restructuring off to a positive start, we can now push ahead with confidence to execute and deliver on our commitment,” said Lee Chee Koon, Group CEO of CapitaLand Group.
After the proposed transaction is completed by September 2021, both of CapitaLand’s lodging business and investment management platforms will be consolidated into CapitaLand Investment Ltd (CLI), which will be listed on the local bourse (SGX) by way of introduction.
As for its real estate development business, CapitaLand Development (CLD), it will be delisted and fully privatised. It will be wholly-owned by CLA Real Estate Holdings, which is fully owned by Temasek Holdings, an investment company owned by Singapore’s government. At present, CLA holds a 52 percent stake in CapitaLand.
“From September 2021, CapitaLand will operate as 2 clearly defined entities. These two core entities will complement and mutually reinforce each other. They represent the future of CapitaLand.”
Post-transaction, CLI is expected to become the biggest property investment manager in Asia and the 3rd largest in the world, with assets under management (AUM) of roughly S$115 billion as of 31 December 2020.
“As the market increasingly starts to appreciate the value of real estate investment managers (REIMs), we expect to see more Asian-based REIMs emerge. This will mean stronger competition for capital, but also more opportunities as global capital flows into Asia,” said Lee.
“As one of the leading listed real estate fund managers in the world with a strong foundation in Asia, CLI is in a good position to tap these opportunities. To ensure that CLI retains its distinctive competitive advantages, we will capitalise on our strengths and exploit the synergies between CLI and CLD under the unique and vibrant ONE CapitaLand ecosystem,” he added.
