SINGAPORE: CapitaLand Investment (CLI) is set to acquire Wingate Group’s property and credit investment management business in Australia for A$200 million (about S$172 million) to grow its private credit business.
The deal also includes an earn-out based on Wingate’s performance over the next three years, with the acquisition expected to close in the coming months, as reported by The Business Times.
Wingate currently manages A$2.5 billion (about S$2.15 billion) in funds, which will push CLI’s total funds under management (FUM) to S$115 billion, including the FUM from SC Capital Partners’ portfolio.
CLI said on Monday, Dec 16, that the expansion of CLI’s private credit will strengthen its private funds business and support its goal of reaching S$200 billion in FUM by 2028.
CLI plans to keep Wingate based in Australia and maintain and grow the business under its current management.
CLI’s group chief financial officer, Paul Tham, highlighted that Australia is a key market with strong growth opportunities. He also identified other Asia-Pacific markets, such as South Korea, India, and Japan, as having scalable private credit prospects.
He said Wingate’s expertise in private credit complements CLI’s platform, allowing them to work together and provide more value to their capital partners in Australia and other markets.
He added that CLI plans to grow its Australian presence by expanding its listed funds, private funds, and commercial and lodging management businesses to increase fee income.
Reports from the Australian Financial Review (AFR) in August revealed that Wingate was in advanced discussions with a Singaporean company regarding a significant investment or takeover, citing three sources familiar with the matter.
The buyer was later confirmed in November as CLI, with AFR noting that the deal was initially expected to close in August but faced delays during negotiations.
CLI stated it would announce details only when there were significant updates. When asked by Mingtiandi, CLI stated it would only announce details once there were material developments. /TISG
Read also: CapitaLand’s Extra Space Asia expands in Japan through strategic partnership with Ambitious Co