CapitaLand shareholders vote in favour of restructuring plan

From September, CapitaLand will operate as two distinct entities: the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development.
From September, CapitaLand will operate as two distinct entities: the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development.PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - CapitaLand shareholders have voted in favour of the real estate group's proposal to privatise its development arm and to list its fund-management and property-investment business.

From September, CapitaLand will operate as two distinct entities: the new, listed unit CapitaLand Investments (CLI) and the privatised CapitaLand Development.

Over 3,400 shareholders voted by proxy at a virtual extraordinary general meeting and a scheme meeting on Tuesday (August 10) afternoon, among which 99.6 per cent backed the resolution to approve the capital reduction and distribution in specie, CapitaLand said in an update.

The scheme of arrangement received approval from 97.6 per cent of the number of shareholders holding approximately 99.8 per cent in value of the total number of shares voted.

Upon listing on the Singapore Exchange, CLI is expected to become a leading listed real estate investment manager globally, with pro forma total real estate assets under management of approximately $115 billion as at Dec 31, 2020.

On a pro forma basis, as at Dec 31, 2020, it had approximately $78 billion of real estate funds under management held via its managed listed funds and unlisted funds across the Asia-Pacific, Europe and the USA.

CapitaLand group chief executive Lee Chee Koon said: "As the market increasingly starts to appreciate the value of real-estate investment managers (REIMs), we expect to see more Asian-based REIMs emerge. This will mean stronger competition for capital, but also more opportunities as global capital flows into Asia. As one of the leading listed real-estate fund managers in the world with a strong foundation in Asia, CLI is in a good position to tap these opportunities."

CapitaLand's management had said last month that CLI will look at creating new products as it aims to achieve $100 billion in funds under management by 2024 and grow its lodging business to 160,000 units under management by 2023.

CLI shares are expected to list on Sept 16, subject to approval by the authorities. Sept 3 is expected to be the last day of trade for the shares of CapitaLand.

CapitaLand had called for a halt in the trading of its shares at 2.18 pm on Tuesday. The shares last traded at $4.07.