CapitaLand Investment Limited (CLI) has just announced its A$200 million ($173 million) acquisition of Wingate Group Holdings’ property and corporate credit investment management business. The deal, which includes an earn-out, will significantly increase CLI’s presence in Australia, adding A$2.5 billion in funds under management (FUM) to the company’s existing FUM of $115 billion.
With this acquisition, CLI now expects to reach its 2028 goal of $200 billion in FUM much sooner. The company has also committed to investing up to A$1 billion in growing its FUM in Australia, a market that it had previously divested from a decade ago to focus on other overseas markets, particularly China.
The news of CLI’s acquisition was first reported by the Australian media in November and was confirmed by the company earlier this month. Wingate, one of the largest private credit investment managers in Australia, has a strong track record of more than 350 completed transactions worth over A$20 billion.
CLI and Wingate are not strangers, having partnered in September for the creation of the A$265 million Australia Credit Program (ACP). According to CLI, the acquisition will further expand its proprietary deal origination networks, provide access to more institutional and private high-net-worth investors, and increase its exposure in Australia.
Paul Tham, CLI’s group CFO, believes that besides Australia, there are also significant private credit opportunities in other Asia Pacific markets, such as South Korea, India, and Japan. He adds that as CLI continues to diversify geographically, Australia will be a key focus market for growth.
CLI also expects significant growth in the Australian private capital market, which has seen a 33% increase in assets under management over the past 18 months, reaching A$139 billion. By 2028, it is forecasted that there will be a A$146 billion commercial mortgage funding gap.
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With this acquisition, CLI will diversify its portfolio, which currently includes logistics, business parks, office, and lodging properties across nine Australian cities. As of Sept 30, CLI manages 34 logistics properties and business parks, as well as four Grade A office buildings in Australia. It also has over 13,500 lodging units across more than 150 properties under its wholly-owned lodging business unit, The Ascott.