CapitaLand Aims for $76B in Assets Under Management by 2020

Lim Ming Yan CapitaLand

CapitaLand’s Lim Ming Yan announced an ambitious plan to reach $76 billion AUM by 2020

Singaporean developer CapitaLand plans to grow its total assets under management from the current S$88.8 billion ($67 billion) to around S$100 billion ($76 billion) by 2020, the company revealed in its latest financial results announcement.

The largest developer in Southeast Asia said it would reach the target by co-investing with capital partners and funds, or by managing assets on behalf of funds or third-party owners, without buying equity stakes, according to a newspaper account.

“$100 billion is a size we think is good and strong enough for CapitaLand to be fairly resilient and enjoy economies of scale,” group president Lim Ming Yan was quoted as saying. “In terms of approach, we don’t have to own 100 percent of the properties. We are happy to own a certain percentage. With that, it actually frees up a lot of capital for us to consider new opportunities.”

CapitaLand’s Profit Boosted by Over $2.1B in Sales

In a Tuesday statement on its financial year 2017 results, CapitaLand Limited said its profit after tax and minority interests had jumped 30.3 percent year-on-year to S$1.55 billion ($1.2 billion) during the period, thanks to higher contributions from development projects in Singapore, as well as shopping centres and serviced residences that were newly acquired and launched.

Innov Tower Shanghai

Innov Tower in Shanghai’s that made $226 million for CapitaLand

A series of property disposals also served to boost net profit. The developer earned a combined S$1.1 billion ($866 million) last year through the sale of the office building Innov Tower in Shanghai and the disposal by CapitaLand Commercial Trust (CCT) of the office asset One George Street and commercial complex Wilkie Edge, both in Singapore.

CapitaLand also sold its stake in 20 Chinese malls for RMB 8.37 billion ($1.3 billion) to mainland home builder China Vanke last month. In December, the Singaporean firm offloaded its interest in six Indian malls and a 50 percent share of a mall management company for $53.8 million.

Despite these property sales, CapitaLand’s total assets under management grew 13 percent in 2017 from the previous year’s S$78.4 billion ($54 billion).

Singaporean Builder Still Bullish on China

CapitaLand’s revenue in 2017 dropped 12.2 percent to S$4.6 billion ($3.5 billion), which the company attributed mainly to lower completion and handover of units in development projects in China.

The group managed to free up S$2.6 billion ($2 billion) through divestments and announced S$5.7 billion ($4.3 billion) in new investments during the year. CapitaLand said it is optimistic about China’s residential market, and plans to replenish its land bank in the country, according to local media accounts.