(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.