CapitaLand Investment Limited (CLI) is expanding its presence in Australia through the acquisition of Wingate Group Holdings, which includes the property and corporate credit investment management business, for A$200 million ($173 million), with an additional earn-out. This acquisition will add A$2.5 billion to CLI’s funds under management (FUM) in Australia, increasing its total FUM in the country by 30% to $8.3 billion. This will account for 7% of CLI’s total FUM of $115 billion. CLI has set a target to reach $200 billion in FUM by 2028 and has committed to investing up to A$1 billion in growing its FUM in Australia. This move comes 10 years after the previous board and management divested its key assets in Australia to focus on the then faster-growing China and other overseas markets.
Following its recent investor day, CLI announced the acquisition of Wingate, confirming earlier reports by the Australian media in November. Wingate is one of the leading private credit investment managers in Australia, with a portfolio of over 350 transactions worth over A$20 billion. CLI and Wingate have previously collaborated on the A$265 million Australia Credit Program (ACP), which was launched in September. With the acquisition of Wingate, CLI will have access to a wider network of institutional and high-net-worth investors in Australia, which will help expand its deal origination capabilities.
CLI’s group CFO, Paul Tham, states that there are opportunities for scalable private credit investments in other Asia Pacific markets, including South Korea, India, and Japan. He also mentions that Australia is a focus market for CLI, with significant potential for growth. According to CLI, the Australian private capital market has grown by 33% in the last 18 months, with assets under management reaching A$139 billion. It is forecasted that there will be a A$146 billion commercial mortgage funding gap by 2028.
Through the acquisition of Wingate, CLI will diversify its portfolio, which currently includes logistics, business parks, office, and lodging assets across nine cities in Australia. As of September, CLI manages 34 logistics properties and business parks, four Grade A office buildings, and over 13,500 lodging units across more than 150 properties through its wholly-owned lodging business unit, The Ascott.