Surbana Corporation restructured into two businesses
Residential development business to be integrated into CapitaLand China Consultancy business to embark on expansion plan
Singapore, 1 April 2013 – CapitaLand Limited (“CapitaLand”) today announced the restructuring of Surbana Corporation’s residential development and consultancy businesses. The residential development business will be integrated into CapitaLand China. Mr Puah Tze Shyang, Chief Executive Officer (CEO), Surbana Land, will continue helming the residential development business as its CEO and will report to Mr Jason Leow, CEO, CapitaLand China. The consultancy business will pursue growth plans independently under the direction of its new Chairman, Mr Liew Mun Leong, and new CEO, Mr Pang Yee Ean.
Prior to the restructuring, CapitaLand and Temasek held their respective stakes of 40% and 60% in the residential development and consultancy businesses through Surbana Corporation. With the restructuring, CapitaLand and Temasek will hold their respective stakes of 40% and 60% in the consultancy business separately from their respective stakes of 40% and 60% in the residential development business.
Mr Lim Ming Yan, President and Group CEO of CapitaLand Limited, said: “The restructuring of Surbana Corporation gives the residential development and consultancy businesses greater focus to pursue growth. The integration of the residential development business into CapitaLand China will enable us to reap synergistic benefits. China is one of our core markets with a portfolio accounting for S$13.4 billion or 39% of the Group’s total assets as at end 2012. As a long term investor in China, we are confident of its growth opportunities and will continue to add value to the real estate market through our quality developments. As a 40% shareholder in the consultancy business, we are pleased that it will be led by an experienced CEO under the guidance of a strong Chairman.”
Mr Jason Leow, CEO of CapitaLand China, said: “The integration of Surbana’s residential development business into CapitaLand China complements the Group’s multi-sector business in China. In the last eight years, Surbana has established itself as a premium residential developer with five developments located in Chengdu, Shenyang, Wuxi and Xi’an in China, with a gross floor area (GFA) of approximately six million square metres (sqm). With this integration, CapitaLand will have a total GFA of 22 million sqm in China, cementing its position as the largest foreign real estate developer in terms of GFA. This clearly allows us to reap economies of scale.”
The consultancy business has announced plans to break into new sectors in Singapore and expand its presence in the key markets of China, Middle East, Southeast Asia, Africa and Latin America. This is part of its aim to achieve rapid growth and become a leading building and infrastructure consultancy in the region. This restructuring is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2013.