A big step by CapitaLand and Temasek in play for global stakes

CAPITALAND'S announcement that it would be acquiring Temasek subsidiary Ascendas-Singbridge (ASB) appears to be a positive development for the Singapore-listed developer and Temasek.

In a briefing with analysts and the media, CapitaLand's CEO, Lee Chee Koon, said the deal which was negotiated over half a year, marks an important milestone for CapitaLand and its transformational journey. A lot of effort was taken by management to justify the purchase of ASB, a business space solutions provider with S$23.6 billion assets under management (AUM). The deal was eventually sealed over the weekend and a goodwill premium of S$800 million paid.

Clearly, for CapitaLand, the deal makes sense. ASB will add an interesting dimension to CapitaLand's portfolio of residential and shopping malls. More than 80 per cent of ASB's AUM is in business space, and more than half of its AUM in sectors exposed to new economy such as business parks, logistics and data centres. The diverse portfolio will give CapitaLand the flexibility to deploy capital according to property cycles. CapitaLand's geographical exposure will reach beyond Singapore and China, into new growth markets in Europe, US and especially India, a prom…