CapitaLand Investment expects more big mandates after S$2.4 billion Income Insurance win

[SINGAPORE] CapitaLand Investment ( CLI ) expects to win more large institutional mandates after securing a S$2.4 billion real estate portfolio from Income Insurance last month, a senior executive said.

Patricia Goh, CLI’s CEO for South-east Asia and global head of logistics and self-storage, told Reuters earlier this month that large private capital commitments typically follow years of engagement.

“When private capital partners commit S$500 million to S$1 billion in equity, it’s actually after years of engagement,” Goh said.

“The expectation is that we will be able to convert more investors who we have been trying to get to understand us over the past few years.”

Goh said CLI won the Income mandate due to its local presence, tenant relationships, and track record in buying, managing and selling assets across sectors.

Under the mandate, CLI will manage Income’s portfolio, and pursue new investments and refresh assets through divestments and acquisitions, she said.

It can separately generate portfolio management, divestment and acquisition fees for CLI, she added.

Some investors are considering shifting more capital from the US and Europe to Asia-Pacific, Goh said, adding that Singapore remains attractive as property transactions have continued through high interest rates, geopolitical conflict and market stress.

CLI will look for opportunities where it has an edge, including logistics, retail, offices, mixed-use projects and self-storage, Goh said.

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Its self-storage platform with APG owns about 110 facilities across six markets and is valued at about S$700 million. Goh said it could grow to more than S$1 billion by next year. REUTERS