CapitaLand Investment Acquires Wingate Group’s Property and Corporate Credit Business
CapitaLand Investment (CLI) is acquiring the property and corporate credit investment management business of Wingate Group in Australia for A$200 million (S$173 million), to expand its private credit business and portfolio in the country.
Acquisition Terms
This will come on top of an earn-out that will be based on Wingate’s performance over a period of three years after the completion of the acquisition, which is slated to take place “in the coming months”.
Impact on Funds Under Management
On Monday (Dec 16), CLI said Wingate’s current A$2.5 billion funds under management (FUM) will boost the group’s FUM to S$115 billion after including the FUM of SC Capital Partners’ portfolio.
Private Credit Expansion
The expansion in private credit will bolster CLI’s private funds business, while providing an additional engine of growth towards the group’s S$200 billion FUM target by 2028, it added.
Wingate’s Future
Wingate will remain domiciled in Australia, and CLI said it plans to maintain and grow the company’s business under its existing management.
Future Growth Opportunities
Highlighting Australia as one of CLI’s focus markets with significant potential for growth, Paul Tham, group chief financial officer of CLI, said he also sees “scalable private credit opportunities” in other Asia-Pacific markets, most notably in South Korea, India and Japan.
Conclusion
The acquisition of Wingate Group’s property and corporate credit business is a significant step forward for CapitaLand Investment, expanding its private credit business and portfolio in Australia. The company plans to maintain and grow Wingate’s business under its existing management, and sees opportunities for growth in other Asia-Pacific markets.
Frequently Asked Questions
Q: What is the acquisition price of Wingate Group’s property and corporate credit business?
A: The acquisition price is A$200 million (S$173 million).
Q: What is the earn-out period for Wingate Group’s performance?
A: The earn-out period is three years after the completion of the acquisition.
Q: What is the impact of the acquisition on CapitaLand Investment’s funds under management?
A: The acquisition will boost CapitaLand Investment’s funds under management to S$115 billion after including the funds under management of SC Capital Partners’ portfolio.
Q: What are the future growth opportunities for CapitaLand Investment?
A: CapitaLand Investment sees scalable private credit opportunities in other Asia-Pacific markets, most notably in South Korea, India and Japan.
