On the evening of March 22, CapitaLand announced that CapitaLand will implement the group business restructuring proposal with Kaiteng holdings, integrating its investment management platform and hotel business into “CapitaLand Investment Management (clim)”, which will be listed on the Singapore Stock Exchange. At the same time, it will privatize the group’s development business, which will be controlled by Kaiteng after the implementation of the plan Shares.
Huang Jizu, chairman of the board of directors of Kaide group, said that the restructuring plan is an important milestone in the transformation of Kaide group. It will further drive the expansion of asset and investment management as well as the hotel business, which will also consolidate the market position of CapitaLand group in Asia’s real estate investment management business. At the same time, shareholders will have the opportunity to continue to invest in asset light business growth through Capitol investment management, and will also benefit from the huge value released by business restructuring.
It is understood that Kaiteng holdings is a wholly-owned subsidiary of Temasek group. As of March 12, 2021, it owns 52% of the equity of Kaide group and is the largest shareholder of Kaide group.
According to the restructuring plan of CapitaLand group, the investment management platform will be merged with the hotel business. Among them, the hotel management business of Kaide group includes the whole line of hotel management business and the global leading service apartment management platform of Ascott. The portfolio managed by CapitaLand includes high-quality revenue oriented properties with an asset value of more than S $10.1 billion. Most of these properties can be recycled and used as potential asset reserves to help Kaide investment management’s fund instruments expand the scale of assets under management within the expected three-year realization period.
After the merger, Kaide investment management has managed about S $115 billion in assets, making it the third largest listed real estate investment management company in the world.
In terms of privatization of development business, the remaining real estate development related businesses and assets of CapitaLand group, with a net asset value of about S $6.1 billion, will be held by Kaiteng holdings after the implementation of the restructuring plan. In addition, the privatized development business will continue to support the development of Capitol investment management business by participating in and cooperating in project development or renovation of Capitol investment management and its funds.
After the restructuring, the privatized development business will also become an incubator for potential new business of Cade group. The development business through privatization will continue to develop and nurture projects, which will be an important source of project reserve for Cade investment management.
“This restructuring is to highlight our business focus and position Cade as an asset light and capital efficient enterprise. We have made good progress in the layout of the new economy, expanding our global business footprint, and expanding our cost-benefit business. The valuation of listed real estate investment management in the capital market is usually higher than its net asset value. Given the scale, capability and strong business ecosystem of Kaide investment management, we believe it will be able to bring good returns to shareholders. ” “Due to the long incubation period, the value of real estate development business has not been fully reflected in the open market,” said Li Zhiqin, chief executive of CapitaLand group. Privatization of this part of the business will enable Cade to better grasp the real estate development cycle and optimize the returns of different asset classes and markets. “
At the same time, Li Zhiqin pointed out that in view of the privatization of the development business is an important source of project reserves for Kaide investment management, the sound business ecosystem built by Kaide group will remain unchanged. The symbiotic relationship between businesses in the group will become a major advantage of Kaide investment management, and make it different from other real estate investment management companies.
Beijing Business News (reporter Zhao zhuolan)
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