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CapitaLand Group CEO Mr Lee Chee Koon gave an opening presentation during the virtual EGM and Scheme Meeting, sharing the unique value proposition of CapitaLand's investment management and development businesses, and the key competitive advantages of CapitaLand Investment.
Singapore, 10 August 2021 – CapitaLand shareholders have voted overwhelmingly in favour of the Proposed Strategic Restructuring and Listing of CapitaLand Investment (the “Proposed Transaction”). Post-Proposed Transaction, CapitaLand’s investment management platforms, as well as its lodging business, will be consolidated into CapitaLand Investment Limited (“CLI”)1, which will be listed by introduction on the Singapore Exchange (“SGX-ST”); while the real estate development business of CapitaLand will be placed under private ownership, to be fully held by CLA Real Estate Holdings Pte. Ltd. (“CLA” or the “Offeror”).
More than 3,400 CapitaLand shareholders voted by proxy at the Extraordinary General Meeting (“EGM”) and the Scheme Meeting (collectively, the “Meetings”) held via electronic means today. At the EGM, approximately 99.59% of the total number of votes were in favour of the resolution to approve the Capital Reduction and Distribution in Specie. At the Scheme Meeting, the resolution to approve the Scheme of Arrangement received approval from approximately 97.58% of the number of shareholders holding approximately 99.80% in value of the total number of CapitaLand shares voted. The Offeror and its concert parties abstained from voting at the Meetings.
Mr Lee Chee Koon, Group CEO, CapitaLand Group, said: “I would like to thank our shareholders for the resounding support. I am deeply humbled by and grateful for their trust. With CapitaLand’s restructuring off to a positive start, we can now push ahead with confidence to execute and deliver on our commitment. From September 2021, CapitaLand will operate as two clearly defined entities: CLI, CapitaLand’s listed global real estate investment management business, and the privatised CapitaLand Development (“CLD”) with its extensive property development capabilities. These two core entities will complement and mutually reinforce each other. They represent the future of CapitaLand.”
“We are prepared for the exciting challenge that lies ahead. As the market increasingly starts to appreciate the value of real estate investment managers (“REIMs”), we expect to see more Asian-based REIMs emerge. This will mean stronger competition for capital, but also more opportunities as global capital flows into Asia. As one of the leading listed real estate fund managers in the world with a strong foundation in Asia, CLI is in a good position to tap these opportunities. To ensure that CLI retains its distinctive competitive advantages, we will capitalise on our strengths and exploit the synergies between CLI and CLD under the unique and vibrant ONE CapitaLand ecosystem. We will stay disciplined in uncovering and unlocking value for shareholders, and will remain a good steward of the funds that our shareholders and capital partners have entrusted us with.”
"To ensure that CLI retains its distinctive competitive advantages, we will capitalise on our strengths and exploit the synergies between CLI and CLD under the unique and vibrant ONE CapitaLand ecosystem. We will stay disciplined in uncovering and unlocking value for shareholders, and will remain a good steward of the funds that our shareholders and capital partners have entrusted us with."
Upon listing on SGX-ST, CLI is expected to become a leading listed REIM globally with pro forma total real estate assets under management2 (“RE AUM”) of approximately S$115 billion as at 31 December 2020. On a pro forma basis, as at 31 December 2020, CLI had approximately S$78 billion of real estate funds under management3 (“FUM”) held via its managed Listed Funds and Unlisted Funds across the Asia-Pacific, Europe and USA.
Subject to (i) obtaining the Court’s orders approving the Capital Reduction and Distribution In Specie and sanctioning the Scheme and (ii) the satisfaction and/or waiver of other conditions of the Scheme, the Proposed Transaction is expected to be completed in or around mid-September 2021,4 upon which CapitaLand will be delisted from SGX-ST and CLI will be listed on SGX-ST.
1 CLI effected a change of name from CapitaLand Financial Limited to CapitaLand Investment Management Limited on 22 March 2021 and subsequently from CapitaLand Investment Management Limited to CapitaLand Investment Limited on 18 June 2021.
2 Represents the total value of real estate managed by CLI Group and which is stated at 100% property carrying value (including assets whether operational or under development).
3 Refers to the proportionate share of total assets under Listed Funds and Unlisted Funds managed by CLI. As at 31 March 2021, CLI’s FUM is S$79 billion.
4 Please note that the expected completion date is indicative and is subject to change. CapitaLand will announce updated timetable with the exact dates in due course.