(Nov 7): CapitaLand Investment Ltd is exploring options including carving out its assets in China as part of a potential merger with fellow Singaporean real estate asset manager Mapletree Investments Pte Ltd, according to people familiar with the matter.

 

While talks of a possible merger have been on and off for years, discussions have picked up recently as part of year-end strategic reviews, the people said, asking not to be identified because the deliberations are private. Any deal would be complex, given the web of assets belonging to the firms, including some in their real estate investment trusts, the people said.

 

About 35% of CapitaLand&rsquo s $136 billion (US$104 billion, or RM434.36 billion) real estate assets under management were in China as of the end of 2024, according to its annual report. Singapore state investor Temasek Holdings Pte Ltd owns 54% of Capitaland and 100% of Mapletree.

 

Talks are ongoing and no final decisions have been made, the people said.

 

Representatives for CapitaLand, Mapletree and Temasek declined to comment.

 

Dow Jones reported earlier this week that CapitaLand and Mapletree are considering a potential merger. In response to the report, Capitaland has said that it remains committed to delivering long-term value for its shareholders, and regularly explores and evaluates investment opportunities.

 

In 2021, Capitaland shareholders approved a move to split its investment management and development operations, which led to the listing of Capitaland Investment Ltd. Its shares have dropped about 3% in Singapore over the past 12 months, giving the firm a market value of about US$10 billion. The Straits Times Index has had double digit gains in the same period.

Fee-related revenue improves to S$882 million from S$845 million

 

[SINGAPORE]   CapitaLand Investment   : 9CI 0% (CLI) reported a 25.5 per cent plunge in total revenue to about S$1.6 billion for the first nine months of 2025, from S$2.1 billion in the year-ago period, on the back of the deconsolidation of lodging trust   CapitaLand Ascott Trust (Clas)   : HMN +0.53%.

 

The asset manager said in an update filed to the Singapore Exchange on Thursday (Nov 6) that fee-related revenue improved to S$882 million from S$845 million, boosted by higher event-driven fees from listed funds and contributions from new funds.

 

Revenue from real estate investment, on the other hand, slid 12 per cent to S$753 million due to the deconsolidation of Clas and divested assets.

 

Equity totalling S$3.7 billion was raised by listed and private funds for the year to Nov 5, CapitaLand Investment said. 

 

Specifically, private funds raised about S$2.1 billion, with continued interests in regional thematic and country-focused funds. Listed funds raised S$1.6 billion to fund strategic acquisitions and debt repayments.

 

The asset manager also monetised S$2.2 billion through portfolio optimisation and value unlocking during the approximately 10-month period.

 

Funds under management were S$120 billion as at Nov 5, against S$117 billion as at the end of FY2024.  

 

The composition of funds under management by country remained stable relative to FY2024, with the lion&rsquo s share or 40 per cent of funds being in South-east Asia. 

 

By asset class, the proportions of funds also remained stable nearly a quarter (24 per cent) of the funds were invested in the retail sector.

 

Net debt/equity was 0.43x, interest coverage ratio 3.8x, and there was S$6.4 billion in debt headroom as at end-September.

 

Insurance and pension funds were the top two investors of the private funds, making up 32 per cent and 20 per cent, respectively, as at end-September. Slightly over 60 per cent of the investors were based in the Asia-Pacific.