SINGAPORE: Singapore's CapitaLand buys the owner of a real estate investment trust from state-owned investor Temasek in a $ 11 billion business that, according to the developer, will be Asia's largest diversified real estate group.
the holding companies of the Ascendas Singbridge Group, which manages the Ascendas Real Estate Investment Trust, the Ascendas India Trust and the Ascendas Hospitality Trust, for cash and stock purchases.
The deal will form a group of combined companies with assets under management of more than $ 116 billion, CapitaLand and Ascendas-Singbridge said Monday (January 14) in a joint statement.
Ascendas-Singbridge is primarily a business space provider, including logistics and business parks and data centers.
"Our complementary strengths are a strong driver of growth in the growing real estate environment in Singapore and internationally," said Ng Kee Choe, Chairman of CapitaLand's Board of Directors, in the statement.
The target companies have a combined enterprise value of S $ 10.9 billion.
Under the agreement, Temasek will effectively receive approximately S $ 6 billion in cash and half in new CapitaLand shares, which will be $ 3.50 each.
Upon completion of the deal, Temasek's stake in CapitaLand will increase from around 40.8 percent to around 51 percent.