CapitaLand shareholders have voted overwhelmingly in favour of the proposal to split the company into two: a listed real estate management firm and a privately-held developer.
The two clearly defined entities will start operating as such starting from September.
CapitaLand Investment Limited (CLI) will consolidate CapitaLand’s existing investment management platforms and the lodging business, with a portfolio worth $115 billion. It will be listed on the SGX by way of introduction.
The privately-held CapitaLand Development will focus on development.
“These two core entities will complement and mutually reinforce each other. They represent the future of CapitaLand,” says CapitaLand’s group CEO Lee Chee Koon.
More than 3,400 CapitaLand shareholders voted by proxy at the EGM held via electronic means on Aug 10. The votes in favour of the various resolutions ranged from 97.58% to 99.59% to 99.8%.
Lee notes that investors are starting to better appreciate the value of real estate investment managers (REIMs). He expects more Asia-based REIMs to emerge.
“This will mean stronger competition for capital, but also more opportunities as global capital flows into Asia,” he says.
“As one of the leading listed real estate fund managers in the world with a strong foundation in Asia, CLI is in a good position to tap these opportunities,” adds Lee.
CapitaLand shares, which were halted ahead of the EGM, last traded at $4.07.
Photo: Raffles City Chongqing / CapitaLand
