CapitaLand Investment Limited (CLI) is expanding its presence in Australia with the acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), plus an additional earn-out. The deal is set to increase CLI’s total funds under management (FUM) in Australia by 30%, bringing it to $8.3 billion. This will also contribute to CLI’s ambition to reach $200 billion in FUM by 2028.
The acquisition, announced on Dec 16, confirms earlier reports by the Australian media last month. Upon completion, CLI’s FUM in Australia will make up around 7% of its total of $115 billion.
CLI’s commitment to investing up to A$1 billion in growing its FUM in Australia is part of its goal to reach $200 billion in FUM by 2028, a decade after divesting its key assets in Australia to focus on rapidly growing markets like China and other overseas markets.
CLI has had a long-standing partnership with Wingate, and in September, announced the successful close of a A$265 million Australia Credit Program (ACP) created in collaboration with Wingate.
Wingate is a reputable credit investment manager in Australia, having completed over 350 transactions worth more than A$20 billion. CLI’s acquisition of Wingate will not only expand its extensive deal origination networks, but also provide access to a larger pool of institutional and high-net-worth investors, as well as increase its geographical presence in the Australian market.
Paul Tham, CLI’s Group Chief Financial Officer, believes that besides Australia, there are also significant private credit opportunities in other Asia Pacific markets such as South Korea, India, and Japan. He states that as CLI continues to diversify geographically, Australia is a key focus market with strong potential for growth.
According to CLI, the Australian private capital market has grown 33% over the past 18 months, with assets under management reaching A$139 billion. There is also a forecasted A$146 billion commercial mortgage funding gap expected by 2028. With Wingate’s expertise, CLI will be able to further diversify its portfolio, which includes logistics, business parks, offices, and lodging assets in nine Australian cities.
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As of Sept 30, CLI manages 34 logistics properties and business parks, as well as four Grade A office buildings in Australia. It also owns over 13,500 lodging units across more than 150 properties through its wholly-owned lodging business unit, The Ascott. This acquisition will contribute to CLI’s goal to expand its presence and FUM in Australia, as well as its overall ambition to reach $200 billion in FUM by 2028.