Singaporean property giants CapitaLand Ltd & AscendasSingbridge Pte Ltd announced their intention to merge their interests yesterday, in a $S11 billion deal combining $S116 billion of assets under management in 6 asset classes in 180 cities & 32 countries.
Current asset totals are $S92 billion for CapitaLand, $S24 billion for Ascendas-Singbridge.
In the background is Singapore Government-owned Temasek Holdings (Pte) Ltd, incorporated in 1974 and holding a $S308 billion portfolio at March 2018, mainly in Singapore & through Asia. Temasek owns AscendasSingbridge and will increase its holding in CapitaLand from 40.8% to 51% through this transaction.
In the transaction, CapitaLand will buy the Ascendas & Singbridge subsidiaries from AscendasSingbridge Pte Ltd, subject to a vote by CapitaLand’s independent shareholders, expected to be called in the first half of this year, with completion of the deal in the third quarter. Temasek will receive $S3 billion cash, $S3 billion in CapitaLand shares.
The shares are priced at $S3.50, representing an 11.3% (S36c) premium over CapitaLand’s one-month volume-weighted average price of $S3.1447.
CapitaLand owns & manages a $S92 billion global portfolio comprising integrated developments, shopping malls, lodging, offices, homes, real estate investment trusts & funds. Its core markets are Singapore & China, but it operates in 160 cities in 32 countries. It has one of the largest investment management businesses in Asia and a stable of 5 reits listed in Singapore & Malaysia – CapitaLand MallTrust, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust & CapitaLand Malaysia Mall Trust.
Ascendas Pte Ltd & Singbridge Pte Ltd completed their merger to form the Ascendas-Singbridge group in June 2015. The group is jointly owned by Temasek & JTC Corp (both state-owned) through a 51:49 partnership.
Ascendas-Singbridge Group undertakes projects spanning townships, mixed-use developments, business/industrial parks, offices, hotels & warehouses in Asia, Australia, Europe & the US. It’s a real estate fund manager and holds a portfolio of commercial, hospitality & industrial assets.
Ascendas launched Singapore’s first business space trust, the Ascendas Real Estate Investment Trust (A-REIT), in 2002 and listed the first Indian property trust, Ascendas India Trust (a-iTrust), in 2007. In 2012, it listed the Ascendas Hospitality Trust (A-HTRUST). Ascendas also manages a series of private funds with commercial & industrial assets across Asia.
Ascendas has introduced new business space concepts such as integrated communities & solutions, which combine business, lifestyle, retail & hospitality spaces to create work-live-play-learn environments. Its flagship projects include Singapore Science Park & Changi City at Changi Business Park in Singapore, International Tech Park Bangalore in India and Ascendas-Xinsu in Suzhou Industrial Park in China.
Singbridge invests in, develops & manages integrated cities & sustainable urban solutions in Asia, particularly in China. Its projects include the Guangzhou Knowledge City, the Chao Tian Men mixed development in Chongqing, Chengdu Hi-Tech Innovation Park and the Jilin Food Zone.
Attribution: CapitaLand, Ascendas-Singbridge.