LONDON: Singapore's Capitaland Investment said on Monday that it will acquire Australian investment manager Wingate Group's property and corporate credit investment management business for A$200 million (US$127.32 million), in addition to an earn-out.
The company stated that the deal will strengthen Capitaland Investment's (CLI) private credit business and broaden its presence in Australia through Wingate, which has completed transactions exceeding A$20 billion in real estate value.
Once the transaction is completed, Wingate's funds under management (FUM), valued at approximately S$2.2 billion (US$1.63 billion), are expected to increase CLI's total FUM to S$115 billion. Additionally, CLI's FUM in Australia is anticipated to grow by more than 30 per cent, reaching S$8.3 billion.
The acquisition is part of CLI's strategy to diversify, with a strong emphasis on Australia, and follows the successful launch of its Australia credit programme (ACP), which was developed in partnership with Wingate and has successfully attracted Asian investors.
"Australia will play a greater role in contributing to CLI's FUM as we strive towards our S$200 billion FUM target in 2028," said Paul Tham, Group Chief Financial Officer of Capitaland Investment.
CLI mentioned that the acquisition comes at a time when the Australian private credit market is seeing significant growth. The projected A$146 billion commercial mortgage funding gap in Australia by 2028 presents a key opportunity for private credit players like itself.
The acquisition is subject to the fulfilment of conditions, including regulatory approval and is expected to be completed in the coming months, Capitaland said.