CapitaLand Investment, a Singapore-listed real asset manager 52% owned by state investor Temasek, expects to win more large institutional mandates after securing a S$2.4 billion ($1.9 billion) real estate portfolio from Income Insurance last month, a senior executive said.
Patricia Goh, CapitaLand Investment’s CEO for Southeast Asia and global head of logistics and self-storage, told Reuters earlier this month that large private capital commitments typically follow years of engagement.
“When private capital partners commit S$500 million to S$1 billion in equity, it’s actually after years of engagement,” Goh said.
“The expectation is that we will be able to convert more investors who we have been trying to get to understand us over the past few years.”
Goh said CapitaLand Investment won the Income mandate due to its local presence, tenant relationships and track record in buying, managing and selling assets across sectors.
Under the mandate, CapitaLand Investment will manage Income Insurance’s portfolio and pursue new investments and refresh the assets through divestments and acquisitions, she said.
It can separately generate portfolio management, divestment and acquisition fees for CapitaLand Investment, she said.
Some investors are considering shifting more capital from the U.S. and Europe to Asia Pacific, Goh said, adding that Singapore remains attractive as property transactions have continued through high interest rates, geopolitical conflict and market stress.
CapitaLand Investment will look for opportunities where it has an edge, including logistics, retail, offices, mixed-use projects and self-storage, Goh said.
Its self-storage platform with APG owns about 110 facilities across six markets and is valued at about S$700 million. Goh said it could grow to more than S$1 billion hopefully by next year.
($1 = 1.2725 Singapore dollars)
Reuters
