CapitaLand Investment’s (CLI) management announced during its recent investor day on Nov 22 that it has plans to expand its business in Australia. The company has recently made two senior hires in newly created roles to strengthen its talent bench and drive growth in its focus market. Angelo Scasserra has been appointed as CEO of CLI Australia and Rahul Bharara as its chief investment officer. They are expected to join the company in the first half of 2025. In addition, CLI has revealed that it will invest up to A$1 billion ($876.7 million) to grow its funds under management (FUM) in Australia. In September, CLI closed its Australian Credit Programme (ACP), its first credit fund valued at A$265 million and backed by Asian investors.
During the investor day, Lee Chee Koon, group CEO of CLI, shared that the company has established a team for private credit and has formed a partnership with teams from Wingate in Australia to originate and underwrite deals. He also mentioned that there are many potential opportunities in Australia and the Asia-Pacific region. Interestingly, a report by the Australian Financial Review on Nov 25 stated that CLI has plans to acquire Wingate.
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In 2014, CapitaLand divested its Australand Property Group, which was subsequently acquired by Frasers Property and renamed to Frasers Property Australia. During the Q&A session, Miguel Ko, chairman of CLI, was asked about this decision. He stated that he was not around when the decision was made to sell Australand and invest more in China. Ko also refrained from commenting on the decision made by his predecessors, stating that they could not have predicted the current situation in China. At that time, China was experiencing a boom and CapitaLand had a significant competitive advantage. Whether the decision to divest Australand was right or wrong cannot be determined. Ko added that Lim Ming Yan, CapitaLand’s former president and group CEO, had mentioned that the divestment was made under favorable market conditions. The share price of Australand had also performed well before the divestment. The sale allowed CapitaLand to reallocate capital to its core businesses in Singapore and China. In March 2014, CapitaLand sold its remaining 39.1% stake in Australand, after partially divesting its stake in November 2013, in order to improve trading liquidity.
CLI’s recent hiring of top executives and plans to invest in Australia showcase the company’s determination to expand its business in the country. The divestment of Australand in 2014 may have been a strategic decision at that time, but with the current market conditions in China, it is unclear whether it was the right move. CLI’s continued success in Australia will be closely monitored by investors and industry experts.