CapitaLand Investment Limited (CLI) is expanding its presence in Australia with the acquisition of Wingate Group Holdings’ property and corporate credit investment management business. The deal, worth A$200 million ($173 million), is expected to further boost CLI’s funds under management (FUM) in Australia by 30% to $8.3 billion, which is approximately 7% of its total FUM of $115 billion. This acquisition is in line with CLI’s 2028 ambition to reach $200 billion in FUM.
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The acquisition of Wingate Group Holdings, announced on Dec 16, will add to CLI’s existing A$2.5 billion in FUM under Wingate’s management. This will bring CLI closer to its target of investing up to A$1 billion to grow its FUM in Australia, a market that it has recently shifted its focus to, after divesting its key assets in the country a decade ago to focus on other overseas markets, such as China.
According to the Australian media, CLI’s acquisition of Wingate was previously reported in November. Wingate is recognized as one of Australia’s leading private credit investment managers, having completed more than 350 transactions worth in excess of A$20 billion. This acquisition is not the first collaboration between CLI and Wingate, as they recently closed a A$265 million Australia Credit Program (ACP) in September.
CLI believes that the acquisition of Wingate will significantly enhance its proprietary deal origination networks, expand its access to institutional and private high-net-worth investors, and increase its geographical exposure in Australia. According to Paul Tham, CLI’s Group CFO, besides Australia, there are also opportunities for scalable private credit in other Asia Pacific markets, such as South Korea, India, and Japan. As CLI accelerates its geographical diversification efforts, Australia is one of its targeted markets with significant growth potential.
CLI’s decision to focus on Australia is supported by the growth of the country’s private capital market, which has seen a 33% increase in assets under management over the past 18 months, reaching A$139 billion as of April. A funding gap of A$146 billion is also expected in the commercial mortgage market by 2028.
This acquisition will further diversify CLI’s portfolio in Australia, which currently comprises logistics, business parks, office, and lodging assets across nine cities. CLI manages 34 logistics properties and business parks and four Grade A office buildings in Australia, and through its wholly-owned lodging business unit, The Ascott, it operates more than 13,500 lodging units in over 150 properties. Overall, CLI’s acquisition of Wingate is a strategic move that will contribute to its growth and strengthen its presence in the Australian market.