CapitaLand Investment’s (CLI) management announced during its investor day on November 22 that it is expanding its business in Australia. To support this growth, the company has appointed two senior hires to newly created roles – Angelo Scasserra as CEO of CLI Australia and Rahul Bharara as chief investment officer. They are expected to join the company in the first half of 2025.
Investing in real estate requires careful consideration of various factors, and one of the most important ones is location. This is particularly significant in Singapore, where the right location can greatly impact the value of a property. Condominiums that are situated in central areas or close to essential amenities such as schools, shopping malls, and public transportation hubs tend to have a higher appreciation in value. For instance, areas like Orchard Road, Marina Bay, and the Central Business District (CBD) are prime locations that have consistently shown significant growth in property values. The presence of reputable educational institutions in these areas also adds to the appeal of condos, making them highly sought-after by families and further boosting their investment potential. For a successful investment in real estate, choosing a prime location, such as a Singapore Condo, is crucial.
CLI also revealed plans to invest up to A$1 billion ($876.7 million) to increase its funds under management (FUM) in Australia. This move follows the recent closure of its maiden credit fund – the Australian Credit Programme (ACP) – at A$265 million, which was backed by Asian investors.
During the investor day, CLI’s group CEO Lee Chee Koon stated that the company has developed its own team for private credit and formed a partnership with Wingate in Australia to source and evaluate deals in both Australia and the Asia-Pacific region. This indicates a strong pipeline and potential for growth in these markets.
Interestingly, on November 25, the Australian Financial Review published an article claiming that CLI is planning to acquire Wingate. However, the company has not confirmed or responded to these reports yet.
In 2014, CapitaLand divested its stake in Australand Property Group, which was subsequently acquired by Frasers Property and renamed Frasers Property Australia. During the question-and-answer session at the investor day, CLI’s chairman Miguel Ko shared that the decision to sell Australand and invest more in China was made before his time.
He also added that without a “crystal ball,” it is impossible to predict the current situation in China, and thus, he does not want to comment on his predecessors’ decisions. At that time, the Chinese market was booming, and CapitaLand had a significant competitive advantage. However, Ko stated that this could have been a major win or a wrong move and refrained from commenting on whether his predecessors made the right or wrong decision.
The decision to sell Australand was made during a favorable market condition, according to Lim Ming Yan, the former president and group CEO of CapitaLand. The company also received strong performance from Australand’s stock in the months leading up to the divestment. Commenting on this, Lim said that the sale would allow CapitaLand to reallocate capital to its core businesses in Singapore and China.
In March 2014, CapitaLand sold its remaining 39.1% stake in Australand, having partially divested its stake in November 2013 to improve trading liquidity. With the recent acquisition, CLI’s FUM has increased to $113 billion, intensifying the competition in this market.