CapitaLand Investment Limited (CLI) is expanding its presence in Australia with an A$200 million ($173 million) acquisition of Wingate Group Holdings’ property and corporate credit investment management business. This acquisition, which includes an earn-out, will help CLI grow its total funds under management (FUM) in Australia by 30% to $8.3 billion, representing around 7% of its overall FUM of $115 billion.
According to CLI, its goal is to have $200 billion in FUM by 2028. As part of this target, it has committed to investing up to A$1 billion to grow its FUM Down Under. This renewed focus on Australia comes a decade after the previous board and management divested its key assets in the country to concentrate on faster-growing markets such as China.
Following its recent investor day, CLI announced its acquisition of Wingate, confirming earlier reports by the Australian media in November. Wingate is one of the leading private credit investment managers in Australia, having completed over 350 transactions worth more than A$20 billion.
CLI has worked with Wingate previously, as seen in the recent close of its A$265 million Australia Credit Program (ACP), which was created in partnership with Wingate. With this acquisition, CLI will be able to tap into Wingate’s extensive networks, accessing more institutional and private high-net-worth investors and increasing its geographical reach in Australia.
Paul Tham, CLI’s group CFO, believes that besides Australia, there are also promising private credit opportunities in other Asia Pacific markets, particularly South Korea, India, and Japan. As it expands its geographical diversification efforts, Australia is one of CLI’s focus markets with significant growth potential.
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CLI notes that the Australian private capital market has grown by 33% in the past 18 months, with assets under management reaching A$139 billion. However, a projected A$146 billion commercial mortgage funding gap is expected by 2028. With Wingate, CLI aims to diversify its portfolio, which currently includes logistics, business parks, office, and lodging assets in nine Australian cities.
As of September 30, CLI manages 34 logistics properties and business parks, four Grade A office buildings, and over 13,500 lodging units across more than 150 properties under its wholly-owned lodging business unit, The Ascott.