CapitaLand Investment Limited (CLI) is expanding its presence in Australia with the purchase of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), plus an additional earn-out. This acquisition will increase CLI’s funds under management (FUM) in Australia by 30%, bringing its total FUM to $8.3 billion or approximately 7% of its total of $115 billion. This aligns with CLI’s goal to reach $200 billion in FUM by 2028.
The decision to invest in Australia comes after CLI divested its key assets in the country a decade ago to focus on the faster-growing Chinese and other overseas markets. The recent acquisition of Wingate confirms earlier reports by the Australian media and follows the announcement of CLI’s A$265 million Australia Credit Program (ACP) in partnership with Wingate.
Wingate is recognized as one of the leading private credit investment managers in Australia and has completed over 350 transactions valued at more than A$20 billion. CLI has worked with Wingate in the past, and this acquisition will further enhance its deal origination networks, increase access to institutional and private high-net-worth investors, and expand its presence in Australia.
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CLI’s group CFO, Paul Tham, believes that there are significant growth opportunities in Australia’s private credit market, as well as other Asia Pacific markets such as South Korea, India, and Japan. With this acquisition, CLI is accelerating its geographical diversification efforts and focusing on Australia as a market with significant potential for growth.
Australia’s private capital market has seen a 33% growth in the past 18 months, with assets under management reaching A$139 billion. By 2028, there is expected to be a commercial mortgage funding gap of A$146 billion. With the addition of Wingate, CLI will further diversify its portfolio, which currently includes logistics, business parks, office, and lodging assets across nine cities in Australia.
As of September 30, CLI manages 34 logistics properties and business parks, as well as four Grade A office buildings in Australia. It also has over 13,500 lodging units across more than 150 properties under its wholly-owned lodging business unit, The Ascott. This acquisition marks CLI’s commitment to investing in Australia and expanding its presence in the country’s growing private capital market.