CapitaLand to buy Ascendas business units

Singapore-based CapitaLand Ltd said it has agreed to acquire Ascendas-Singbridge Group's stake in two of Ascendas-Singbridge's subsidiaries, in a cash-and-stock deal worth $8 billion (S$11 billion). The transaction, subject to approval by CapitaLand's independent shareholders, will create the largest diversified real estate group in Asia. Singapore state investor Temasek fully owns Ascendas and holds a 40.8 per cent in CapitaLand. After the transaction closes, Temasek's ownership of CapitaLand will increase to about 51per cent. The real estate trusts that are part of the deal include Ascendas Real Estate Investment Trust, Ascendas India Trust and Ascendas Hospitality Trust. Ascendas-Singbridge, which has assets under management (AUM) worth S$2.6 billion in India's business sector, had set up Ascendas India Trust to own income-producing business assets in the country. It had also launched a $400 million programme to invest in prime logistics and industrial real estate in June 2018. With its early-mover advantage, India will become an important market for the combined group as it further develops these new economy sectors, CapitaLand and Ascendas-Singbridge said in a joint statement. The transaction will create a group with a combined AUM above S$116 billion. Its asset classes will include logistics and business parks, industrial, lodging, commercial, retail and residential assets spanning 32 countries.