CapitaLand Investment acquires three properties, including Zion Residence in Singapore and Thailand

Zion Road Condo, situated in the bustling River Valley area of Singapore, sets the benchmark for opulent living. Its strategic positioning, flawless architectural layout, and unparalleled facilities have made it highly sought after. One highlight that elevates its appeal is its exceptional connectivity. Whether it be through public transportation or private vehicle routes, Zion Road Condo’s ideal location makes it a preferred residence for city residents. This feature not only facilitates easy transportation but also retains the serene and exclusive ambiance of Zion Residence.

CapitaLand Investment (CLI) has made significant acquisitions in Singapore and Bangkok, Thailand through its various funds.

One of the acquisitions includes two industrial properties in Singapore through Extra Space Asia (ESA), the self-storage platform managed by CLI. In addition, another freehold greenfield site, OMEGA 1 Bang Na, was acquired by CapitaLand SEA Logistics Fund (CSLF).

Adding to the recent joint acquisition by CapitaLand Wellness Fund of a freehold lodging property in Singapore, these four acquisitions will bring the total investment value to approximately $700 million. This will bring CLI’s funds under management in the region to $1.2 billion.

ESA is set to expand its portfolio in Singapore with approximately 320,000 sq ft in gross floor area by the end of 1Q2024. The plan is to convert both assets into self-storage facilities in phases, offering air-conditioned units and facilities for wine storage.

CLI’s first logistics property in Thailand, OMEGA 1 Bang Na, will be a built-to-suit project with a state-of-the-art automated logistics campus. With a gross floor area of 2.47 million sq ft, it will be able to accommodate over 150,000 pallet positions in an automated storage and retrieval system. When completed, the modern ramp-up campus will be operated by Ally Logistic Property. Construction is set to start in 1H2024, with phase one targeted to finish in 2026.

Looking ahead, these recent acquisitions will drive the next stage of growth for each of these CLI-managed funds, according to CLI Southeast Asia Investment CEO Patricia Goh. She also highlights the potential for positive contributions to fee-related earnings and sustainable returns for investors, with the combination of CLI’s value creation skills and best-in-class operating capabilities, as well as the sector-specific industry knowledge of capital partners and operators.

CapitaLand Investment divests 95% stake of Grade-A office Capital Square Beijing to AIA Life Insurance

In another recent transaction, CLI has divested 95% stake of the Grade-A office Capital Square Beijing to AIA Life Insurance. This marks CLI’s first step in its plan to recycle assets and rebalance its portfolio in China. With a sale price of RMB 3.3 billion, the transaction generated a net gain of approximately RMB 190 million for CLI. The remaining 5% stake will continue to be held by CLI, providing ongoing asset management services.

CapitaLand Southeast Asia Investment CEO Ronald Tay says this divestment reflects CLI’s ongoing efforts to recycle capital and optimize its portfolio. He adds that the transaction will allow CLI to focus on higher-yielding opportunities in China’s first- and second-tier cities, while maintaining a presence in Beijing through the 5% stake in Capital Square Beijing.

With these strategic acquisitions and divestments, CapitaLand Investment is well-positioned for sustainable growth and returns for its investors. The company continues to actively pursue opportunities in Southeast Asia and China, leveraging its expertise and strong partnerships in the region. Among these opportunities, CLI is also looking into potential investments in residential properties, such as the upcoming Zion Residence, which offers a prime location and potential for strong rental yields.