News analysis

Proposed $11b deal to acquire Temasek unit will extend CapitaLand's geographical reach

It will also acquire meaningful scale to break into key growth markets like India

PHOTO: REUTERS

Singapore's blue chip property darling CapitaLand's proposed $11 billion acquisition of Temasek unit Ascendas-Singbridge will not only significantly increase its geographical reach but also give it meaningful scale in key growth markets like India, which it has found difficult to break into.

CapitaLand group chief financial officer Andrew Lim noted yesterday that the deal will play a key role in determining what CapitaLand 3.0 will look like. "More than 80 per cent of Ascendas-Singbridge's AUM (total assets under management) is in the business space, and 50 per cent is in sectors exposed to new economy space such as business parks and data centres. This will allow CapitaLand to capture mega trends (such as rising urbanisation and e-commerce), which will drive growth," he said.

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A version of this article appeared in the print edition of The Straits Times on January 15, 2019, with the headline 'Proposed $11b deal will extend CapitaLand's geographical reach'. Subscribe