Singapore-listed CapitaLand has agreed to buy Ascendas-Singbridge from Singaporean sovereign wealth fund Temasek in an S$11bn deal to create Asia’s largest diversified real estate group.
Ascendas-Singbridge is a leading provider of business spaces across 11 countries, with S$23.6bn of assets under management.
The transaction will increase combined total AUM to more than S$116bn once the deal is approved, the buyer said in an announcement.
The merged group will own logistics/business parks, industrial, lodging, commercial, retail and residential assets across 32 countries.
Under the agreement, Temasek will effectively receive $3bn in cash and $3bn in new CapitaLand shares, priced at $3.50 per share.
The sovereign wealth fund’s stake in CapitaLand will rise from 40.8% to about 51% on completion.
“As CapitaLand continues its leadership in residential, retail and lodging, the combined platforms will give us capabilities across the commercial/business space value chain, while adding a strong foothold in logistics and business parks,” said CapitaLand president and group CEO Lee Chee Koon.
“Geographically, the deal strengthens CapitaLand’s presence in our core markets of Singapore and China, while adding meaningful scale in India, US and Europe.
“This deal immediately adds a portfolio of operating assets that contribute income today, while adding a sizeable pipeline of development projects for the future.”
Ascendas-Singbridge executive director and group CEO Miguel Ko added: “ASB’s early-mover advantage in high-growth markets and attractive new economy sectors, will also bolster the group’s ambition to become the developer of leading edge urban solutions in Asia.”