CapitaLand Investment Limited (CLI) has announced its latest acquisition, adding to its growing presence in Australia. The property and corporate credit investment management business of Wingate Group Holdings, plus an earn-out, was acquired for A$200 million ($173 million).
CLI’s funds under management (FUM) in Australia will be boosted by 30% to A$8.3 billion with the addition of Wingate’s A$2.5 billion FUM. This accounts for 7% of CLI’s total FUM of $115 billion, and is a significant step towards the company’s target of $200 billion in FUM by 2028.
This acquisition is part of CLI’s commitment to invest up to A$1 billion in growing its FUM in Australia. This focus on Australia comes after a decade of divesting its key assets in the country to prioritize faster-growing markets like China and other overseas markets.
The news of CLI’s acquisition of Wingate was first reported by the Australian media last month, and was officially announced on Dec 16. Wingate is known as one of Australia’s leading private credit investment managers, having completed more than 350 transactions worth over A$20 billion.
CLI is familiar with Wingate, having previously partnered with them to create the A$265 million Australia Credit Program (ACP). The acquisition of Wingate will expand CLI’s proprietary deal origination networks and enhance its access to more institutional and private high-net-worth investors. It will also increase CLI’s exposure to the Australian market.
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According to Paul Tham, CLI’s group CFO, there are also promising private credit opportunities in other Asia Pacific markets, such as South Korea, India and Japan. As CLI continues to diversify geographically, Tham sees Australia as a focus market with great potential for growth.
The Australian private capital market has seen a 33% growth in the past 18 months, with assets under management reaching A$139 billion. It is projected that by 2028, there will be a commercial mortgage funding gap of A$146 billion. Wingate’s addition to CLI’s portfolio diversifies its current holdings, which include logistics, business parks, offices, and lodging assets in nine Australian cities.
As of Sept 30, CLI manages 34 logistics properties and business parks and four Grade A office buildings in Australia. It also owns and manages over 13,500 lodging units across more than 150 properties through its wholly-owned lodging business unit, The Ascott. The acquisition of Wingate marks another step in CLI’s growth and diversification in the Australian market.