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CapitaLand Investment Limited (CLI) is expanding its reach in Australia through the acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), plus an earn-out agreement. This move will increase CLI’s funds under management (FUM) in Australia by 30% to $8.3 billion, or around 7% of its total FUM of $115 billion. CLI has set a target of reaching $200 billion in FUM by 2028 and has committed to investing up to A$1 billion in growing its FUM in Australia. This focus on Australia marks a shift in strategy for CLI, as the company had previously divested its key assets in the country in favor of pursuing faster-growing markets like China and overseas.
CLI has a strategic partnership with Wingate, having announced the close of its A$265 million Australia Credit Program (ACP) in September. Wingate is a leading private credit investment manager in Australia with a track record of completing over 350 transactions worth more than A$20 billion. This acquisition will allow CLI to tap into Wingate’s extensive deal origination networks, gain access to more institutional and private high-net-worth investors, and increase its geographical exposure to Australia. Paul Tham, CLI’s group CFO, sees potential for growth in other Asia Pacific markets such as South Korea, India, and Japan, and believes that this move will accelerate CLI’s geographical diversification efforts.
The Australian private capital market has grown by 33% in the past 18 months, with assets under management reaching A$139 billion. CLI projects a commercial mortgage funding gap of A$146 billion by 2028, highlighting the potential for growth in this market. With the acquisition of Wingate, CLI will further diversify its portfolio, which currently includes logistics, business parks, office, and lodging assets across nine cities in Australia. As of September, CLI managed 34 logistics properties and business parks, four Grade A office buildings, and over 13,500 lodging units across more than 150 properties under its lodging business unit, The Ascott. CLI sees Australia as a strategic focus market and believes that this acquisition will help drive its growth in the region.