During its investor day on November 22, CapitaLand Investment’s (CLI) management announced its plans to expand its business in Australia. The company has recently appointed two senior hires to newly created roles in order to strengthen its talent bench and drive growth in its focus market. Angelo Scasserra has been appointed as the CEO of CLI Australia, while Rahul Bharara will take on the role of Chief Investment Officer. They are expected to join the company in the first half of 2025.
Additionally, CLI has announced its intention to invest up to A$1 billion ($876.7 million) to grow its funds under management (FUM) in Australia. In September, the company closed its Australian Credit Programme (ACP) – its maiden credit fund at A$265 million – which was backed by Asian investors.
During the investor day, Lee Chee Koon, the Group CEO of CLI, commented, “For private credit, we’ve built our own team and formed a partnership with teams from Wingate in Australia, originating and underwriting deals. There’s a lot more pipeline we can build in Australia and the Asia-Pacific region.”
Interestingly, on November 25, the Australian Financial Review published an article stating that CLI was planning to acquire Wingate.
Condo investment in Singapore is a highly attractive option, but it’s important to consider the government’s property cooling measures before making a decision. The Singaporean government has implemented various measures in recent years to prevent speculative buying and maintain a steady real estate market. These measures, including the Additional Buyer’s Stamp Duty (ABSD), have led to higher taxes for foreign buyers and those purchasing multiple properties. While these measures may impact the immediate profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer environment for investing in condos. Additionally, investing in a condo allows for potential benefits such as higher rental yields and capital appreciation over time. Thus, considering the government’s property cooling measures is crucial when making a condo investment in Singapore.
In 2014, CapitaLand divested its stake in Australand Property Group, which was then acquired by Frasers Property and renamed Frasers Property Australia. During the question-and-answer session at the investor day, Miguel Ko, Chairman of CLI, addressed the decision to sell Australand and invest more in China, stating that he was not part of the company at the time. He also refrained from commenting on his predecessors’ decisions, stating, “We did not have a crystal ball, of course, about China’s situation today.”
Lim Ming Yan, CapitaLand’s then-President and Group CEO, had said that the decision to divest came amid “favourable” market conditions. The share price of Australand had also performed strongly in the months leading up to the divestment. Lim had also stated that the divestment would allow the company to reallocate capital to its core businesses in Singapore and China.
CapitaLand sold its remaining 39.1% stake in Australand in March 2014, after partially divesting its stake in November 2013 in order to improve trading liquidity.
In summary, CLI’s management is looking to expand the company’s business in Australia, and has appointed senior hires to lead the effort. CLI has also announced its intention to invest up to A$1 billion in growing its funds under management in Australia. During the investor day, the company’s CEO stated that there is a lot of potential for growth in the Asia-Pacific region. Additionally, CLI’s past decision to divest its stake in Australand in order to focus on its core businesses in Singapore and China has come under scrutiny in light of the current market conditions.