CapitaLand Investment Limited (CLI) has agreed to buy an initial 40 per cent stake in SC Capital Partners Group (SCCP) for $214 million (S$280 million).
The remaining stake in SCCP will be acquired in phases over the next five years.
As part of the partnership, CLI will also invest a minimum of $400 million strategic capital in SCCP’s fund strategies to support the growth of the platform.
SCCP is an Asia Pacific real estate investment manager headquartered in Singapore with presence across eight locations in the region, and has a total funds under management (FUM) of $8.2 billion.
The acquisition will significantly boost CLI’s presence in Japan, further enhancing its geographical diversification. CLI’s FUM in Japan will triple from S$2.9 billion5 to approximately S$11 billion. CLI will cement its position as one of Asia Pacific’s largest managers of real estate investment trusts (REITs) by market capitalisation with the addition of the manager of SCCP’s Japan Hotel REIT (JHR).
What they said
Lee Chee Koon, Group Chief Executive Officer, CLI, said: “This acquisition is one of the strategic thrusts to scale up our capabilities and build bench strength across our focus markets, accelerating CLI’s growth as a global real asset manager to create greater value for our stakeholders. CLI and SCCP have complementary portfolios and geographic presence across the Asia Pacific region. The addition of SCCP’s capabilities will further solidify CLI’s foothold in the region.”
Suchad Chiaranussati, chairman and founder of SC Capital Partners Group, said: “We are excited to be joining forces with CLI to capitalise on the growth opportunities and dislocation we see in the real estate investment management markets in Asia Pacific. Our strategic partnership with CLI will enable SC Capital Partners to gain access to additional resources, enabling us to accelerate capital deployment and achieve scale, which is becoming increasingly important. Together with CLI, we look forward to driving continued strong performance and are committed to creating value for our investors.”