Prime Highlights:

• CapitaLand Investmentand Mapletree Investments are exploring a potential merger that could create a US$150 billion real-estate powerhouse in the Asia-Pacific region.
• The move aligns with Temasek’s strategyto build stronger, globally competitive businesses by combining its key portfolio companies.

Key Facts:

• CapitaLand Investmentmanages about S$117 billion (US$90 billion) in assets, while Mapletree Investments manages around S$80.3 billion (US$61.7 billion).
• Temasekowns 100% of Mapletree and 54% of CapitaLand, with a total portfolio valued at US$324 billion.

Background:

Two of Singapore’s leading real-estate asset managers, CapitaLand Investment and Mapletree Investments, are in early talks about a potential merger that could reshape the property landscape across the Asia-Pacific region. If finalized, the merger could create a real-estate powerhouse managing more than US$150 billion in assets, according to sources familiar with the discussions.

Both companies are major players under the umbrella of Temasek Holdings, Singapore’s state-owned investment firm. Temasek fully owns Mapletree Investments and holds a 54% stake in CapitaLand Investment, giving it control over both companies. The possible merger is still at an early stage, and discussions may begin next year. While nothing has been decided yet, the move is part of Temasek’s plan to build larger and stronger global businesses by combining its key companies.

A spokesperson for CapitaLand Investment said the company remains focused on “delivering long-term shareholder value” and regularly evaluates opportunities that align with its strategic objectives. Both Temasek and Mapletree have declined to comment on the speculation.

The merger, if realized, would follow a similar path to Temasek’s earlier restructuring initiatives. In 2023, Temasek merged Keppel Offshore & Marine with Sembcorp Marine to form Seatrium, a leading rig builder. In 2021, CapitaLand streamlined its fund management and hospitality units to improve efficiency and growth.

Currently, CapitaLand Investment manages about S$117 billion (US$90 billion) in assets across areas like retail, offices, industry, and data centers. Mapletree Investments handles around S$80.3 billion (US$61.7 billion) through its REITs and real-estate funds in Asia-Pacific, Europe, the UK, and the US.

With Temasek’s portfolio worth about US$324 billion, the possible merger could make Singapore an even stronger global hub for property investment and boost growth in its real-estate sector.

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