Current location site: Global

Mr Jason Leow, President, Singapore & International, CapitaLand Group, said: “The divestment of these mature malls and office asset is part of CapitaLand’s capital recycling strategy to unlock value by reinvesting the capital into new growth opportunities such as the logistics sector in Japan.  By paring down our exposure in Japan’s retail sector and leveraging our logistics experience in markets such as Singapore, Australia and the United Kingdom to expand into the new economy sector in Japan, we are responding swiftly to shifting market trends and consumer behaviours, positioning CapitaLand for future growth.  Despite COVID-19, we have crossed our capital recycling target of S$3 billion and remain focused on divesting non-core assets opportunistically.  CapitaLand will continue to actively reconstitute and optimise our portfolio to deliver long-term value for our stakeholders.”

Mr Gerald Yong, Chief Executive Officer, CapitaLand International, said: “The logistics sector in Japan presents significant opportunities for CapitaLand.  The global pandemic has accelerated the growth of e-commerce and the logistics sector has been a prime beneficiary of this trend.  Vacancy rates of the logistics sector in Greater Tokyo have reached a historical low of 0.4%.^[4]  The logistics sector is set to continue its growth momentum as more customers transact online. We aim to achieve meaningful scale over time by leveraging Mitsui & Co. Real Estate Ltd’s local knowledge and access to business opportunities to grow our logistics portfolio in Japan.”

CapitaLand’s Presence in Japan and Korea

CapitaLand has been operating in Japan and Korea for close to 20 years.  Post divestment, CapitaLand will retain S$3.8 billion of assets under management (AUM) in Japan and S$2.0 billion of AUM in Korea. 

In Japan, CapitaLand has two malls in Greater Tokyo - Olinas Mall and Seiyu & Sundrug Higashimatsuyama.  CapitaLand also has four office assets in Tokyo and Yokohama.  Through CapitaLand’s wholly owned lodging business unit, The Ascott Limited (Ascott) and its hospitality trust, Ascott Residence Trust (ART), the Group has a strong portfolio of over 5,600 units across more than 30 serviced residences, hotels and rental housing properties in nine cities, including gateway cities such as Tokyo, Osaka and Kyoto.

In Korea, besides being the asset manager for ICON Yeoksam, CapitaLand owns three other office buildings in Seoul through its private funds.  The office buildings are Citibank Centre and Jongro Place which are operational as well as ICON Cheonggye which is under development.  Through Ascott and ART, the Group has five serviced residences and hotels with more than 1,400 units in Jeju, Seongnam and Seoul.
 

^{[1] Based on the exchange rate of JPY 1 to S$0.0129.
[2] Based on the exchange rate of KRW 1 to S$0.001161.
[3] For more information on the properties divested, please see Annex.
[4] September 2020 – Savills Research Spotlight – Japan Logistics.}