Giant Asian real estate developer, CapitalLand, is working on a deal to acquire two wholly owned units from Ascendas-Singbridge which is a subsidiary of Temasek, Saingapore’s state investment firm.
According to CapitalLand, approval of the deal worth $11 billion which is to be made in cash and stocks, will make the company Asia’s largest diversified real estate group with more than $85.79 billion in assets under management.
At that position, the firm would join the worlds 10 ten property fund managers. Toronto based Brookfield Asset Managers, PGIM based in New Jersey and New York’s, Blackstone Group respectively are currently the biggest property fund managers on the globe each with real estate assets worth over $100 billion under management.
Temasek is poised to receive $2.2 billion in cash and a similar amount in shares once the deal is accomplished. On Monday, Capital land CEO told CNBC‘s Sqawk Box that the deal will give the company access to interesting asset classes in the new economy, including industrial, logistics and business parks.
The deal, makes CapitalLand just some millions shy of Kenya’s GDP and bigger than the GDP of several African countries. The fact highlights the total gap in economic growth and development for African countries. To date, the largest private equity deal closed for the continent remains Actis Africa Real Estate Fund 3 which realised $0.5 billion in 2016.