CapitaLand Investment takes initial 40% stake in SC Capital Partners, boosting footprint in Japan
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CapitaLand Investment's group chief executive Lee Chee Koon (right) with Suchad Chiaranussati, chairman and founder of SC Capital Partners.
PHOTO: CAPITALAND INVESTMENT
Michelle Zhu
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SINGAPORE - CapitaLand Investment (CLI) announced on Nov 20 that it would acquire a 40 per cent interest in SC Capital Partners Group (SCCP) for $280 million, while also investing a minimum of $524 million in the company.
CLI will acquire the remaining 60 per cent stake in SCCP in phases over the next five years, it said.
Till then, SCCP will continue to operate independently, while CLI participates at the board level in investment strategies that require the use of strategic capital.
CLI’s 40 per cent initial stake acquisition in SCCP, a Singapore-based real estate investment manager, will increase its funds under management (FUM) by $11 billion to a combined $113 billion.
Noting that the majority, or 76 per cent, of the $11 billion FUM is in Japan, CLI said its acquisition will significantly boost its presence in the country and further enhance its diversification.
Contributions from Japan to CLI’s current FUM are estimated to increase from 3 per cent currently, to 10 per cent of the combined FUM with SC Capital’s.
The addition of SC Capital’s Japan hotel real estate investment trust (Reit) manager to CLI’s portfolio will mark the group’s maiden entry into the Japan Reit market.
This is expected to grow the FUM of CLI’s listed funds from $63 billion currently to $69 billion. It is also estimated to increase the market capitalisation of CLI’s managed Reits and business trusts from over $30 billion to $35 billion.
CapitaLand will fund its initial investment of the 40 per cent stake through cash, with the deal expected to close in the first quarter of 2025.
CLI group chief executive Lee Chee Koon said he considered SC Capital’s portfolio and geographic presence as complementary to those of the group.
He also highlighted the acquisition as one of CLI’s “strategic thrusts to scale up (the group’s) capabilities and build bench strength” across its focus markets.
“The addition of SC Capital’s capabilities will further solidify CLI’s foothold in the region. Together, our collective deal sourcing, investment and asset management network and capabilities across various thematic strategies will provide investors with wider access, and more differentiated and proprietary deal origination,” he said.
Shares of CLI rose two cents, or 0.7 per cent, to close at $2.83 on Nov 20. THE BUSINESS TIMES
