CapitaLand acquiring SC Capital Partners in stages

SINGAPORE – CapitaLand Investment Ltd. (CLI) is acquiring a 40% stake in SC Capital Partners Group (SCCP) for $214 million, and the remaining stake in SCCP in phases over the next five years, subject to the fulfilment of conditions. As part of the partnership, CLI will also invest a minimum of $400 million strategic capital in SCCP’s fund strategies to support the growth of the platform.

The move gives CLI deeper entrée into Japan as SCCP’s Japan Hotel REIT is the second largest hospitality REIT listed in Japan and 13th largest REIT in the country. Currently, SCCP has a total funds under management (FUM) of S$11 billion, 76% of which is in Japan.

CLI’s FUM in Japan will triple from S$2.9 billion to approximately S$11 billion. Contributions from Japan will increase from the current 3% of CLI’s FUM to 10% of the combined S$113 billion FUM of CLI and SCCP.

CLI will fund its initial investment of the 40% stake through cash, with the deal expected to close in the first quarter of 2025. SCCP will continue to operate independently until CLI completes its acquisition of the remaining 60% stake. CLI will participate at the board level in investment strategies that require the use of strategic capital.

When CLI’s acquisition of the 40% stake in SCCP is completed, it will increase CLI’s FUM by S$11 billion, strengthening its foothold as one of Asia Pacific’s largest real asset managers with a combined FUM of S$113 billion. CLI and SCCP’s combined listed and private funds management platform will expand CLI’s network and capabilities across key Asia Pacific markets and sectors including hospitality, living, and renewables.

The FUM of CLI’s listed funds will grow from S$63 billion to S$69 billion, while the market capitalization of its managed REITs and business trusts will increase from over S$30 billion to S$35 billion.

“This acquisition is one of the strategic thrusts to scale up our capabilities and build bench strength across our focus markets, accelerating CLI’s growth as a global real asset manager to create greater value for our stakeholders,” said CLI Group CEO Lee Chee Koon. “CLI and SCCP have complementary portfolios and geographic presence across the Asia Pacific region. The addition of SCCP’s capabilities will further solidify CLI’s foothold in the region.”

“We are excited to be joining forces with CLI to capitalize on the growth opportunities and dislocation we see in the real estate investment management markets in Asia Pacific,” said SCCP Chairman and Founder Suchad Chiaranussati. “Our strategic partnership with CLI will enable SC Capital Partners to gain access to additional resources, enabling us to accelerate capital deployment and achieve scale, which is becoming increasingly important. Together with CLI, we look forward to driving continued strong performance and are committed to creating value for our investors.”