SINGAPORE – Mapletree Investments and Singapore-listed CapitaLand Investment (CLI) are exploring a merger, the Wall Street Journal reported on Nov 3, citing unidentified sources.
The report says the plans are in the very initial stages and a deal may or may not materialise.
A merger could create one of Asia-Pacific’s top property companies with more than US$150 billion (S$195 billion) in assets under management.
One source told WSJ that the process is part of recent moves by Temasek-owned entities to evaluate options for growing their businesses into larger, stronger global entities. Mapletree Investments is wholly owned by Singapore’s investment company Temasek, which also holds 54 per cent of CLI.
This is not the first time there has been market talk of a merger between the two property investment giants.
The report quoted a CLI spokesperson as saying: “CapitaLand Investment remains committed to delivering long-term shareholder value and routinely evaluates investment opportunities aligned with its strategy.”
The spokesperson added that the company does not comment on rumours or speculation.
CLI had $117 billion in assets under management as at August, while Mapletree Investments had $80.3 billion as at March.
CLI has stakes in seven listed real estate investment trusts (Reits) and business trusts – including CapitaLand Integrated Commercial Trust, CapitaLand China Trust and CapitaLand Ascendas Reit – and a suite of private real asset vehicles.
Key properties in its portfolio include Raffles City Singapore, CapitaSpring, CapitaGreen, Asia Square Tower 2, ION Orchard, Bugis Junction and Plaza Singapura, as well as Raffles City Chongqing and Suzhou Centre Mall.
Mapletree Investments manages three Singapore-listed Reits – Mapletree Logistics Trust, Mapletree Pan Asia Commercial Trust and Mapletree Industrial Trust – and nine private equity real estate funds.
Key properties in its portfolio include VivoCity and Mapletree Business City in Singapore, Hong Kong retail mall Festival Walk and UK business park Green Park.