CapitaLand Investment Has Started Trading: What Investors Need to Know


What happened

Today, CapitaLand Investment (SGX: 9CI), or CLI, started trading on the Singapore exchange, opening at S$2.95 per share.

Recall that CLI is the result of a spin-off by property giant CapitaLand Group as part of its restructuring.

CapitaLand Group was split into two — the development division became fully owned by a unit of Temasek Holdings and was privatised, while the investment arm was listed as CLI.

So what

CLI is a global real estate investment manager (REIM) that owns a diversified portfolio of real estate classes comprising integrated developments, retail, office, lodging, business parks, and data centres.

As of 30 June 2021, CLI has S$119 billion worth of real estate assets under management (AUM) as well as S$83 billion of funds under management (FUM).

The group has assembled a team with experience across strategies, functions and asset classes.

CapitaLand Group CEO Lee Chee Koon will also helm CLI, and two new appointments were also announced.

The first is Simon Treacy who is appointed as the CEO of the private equity real estate division and will be in charge of growing CLI’s private equity real estate business.

The other is Patrick Boocock who will take on the role of CEO of private equity alternative assets to grow the group’s unlisted asset portfolio.

Both men come with good credentials. Mr Treacy was the managing director, global chief investment officer and head of US equity for BlackRock’s (NYSE: BLK) real estate division, while Mr Boocock was previously the managing partner and head of Asia at Brookfield Asset Management (TSE: BAM.A).

Now what

80% of CLI’s AUM is located in Asia, and the group intends to grow using three methods — fund management, lodging management, and capital recycling.

The group intends to grow its lodging units under management by 30% to 160,000 by 2023 by leveraging on its established brands such as Ascott, citadines, Somerset and lyf.

As for FUM, CLI plans to grow this to S$100 billion by 2024 through a mix of organic growth and strategic acquisitions.

CapitaLand Group’s development arm will provide a pipeline of assets that can be injected into CLI in due course.

The journey for CLI should be an interesting one and investors can look forward to more growth initiatives to be announced by the group in due course.

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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.

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