CapitaLand Investment Limited (CLI) is expanding its presence in Australia with the recent acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million). The deal also includes an earn-out, boosting CLI’s total funds under management (FUM) in Australia by 30% to $8.3 billion, which is around 7% of its overall $115 billion FUM. This acquisition aligns with CLI’s goal to reach $200 billion in FUM by 2028.
The move to invest A$1 billion in growing its FUM in Australia is part of CLI’s strategy to diversify its portfolio, which had previously focused on China and other overseas markets. This follows its previous divestment of key assets in Australia a decade ago. CLI’s investor day, which took place recently, highlighted the news of the acquisition, which was reported by the Australian media last month.
Wingate is a top player in private credit investment management in Australia, with a proven track record of completing more than 350 transactions worth over A$20 billion. CLI’s familiarity with Wingate stems from their existing partnership in the A$265 million Australia Credit Program (ACP), which was launched in September 2021. With this acquisition, CLI gains access to a wider network of institutional and high-net-worth investors and expands its geographical reach in Australia.
CLI’s Group CFO Paul Tham emphasizes that apart from Australia, other Asia Pacific markets such as South Korea, India, and Japan also offer promising private credit opportunities. As CLI continues to diversify its portfolio globally, Australia remains a focus market with significant growth potential.
According to CLI, the Australian private capital market has grown by 33% over the past 18 months, with assets under management reaching A$139 billion. In the next seven years, a commercial mortgage funding gap of A$146 billion is expected to emerge.
The acquisition of Wingate will further diversify CLI’s portfolio, which currently includes logistics, business parks, office, and lodging assets in nine Australian cities. As of September 30, CLI manages 34 logistics properties and business parks, four grade A office buildings, and over 13,500 lodging units across more than 150 properties under its wholly-owned lodging business unit, The Ascott.
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