CapitaLand Investment Limited (CLI) is expanding its presence in Australia with the acquisition of Wingate Group Holdings’ property and corporate credit investment management business for A$200 million ($173 million), with an additional earn-out.
Once the acquisition is completed, CLI’s total funds under management (FUM) in Australia will increase by 30% to $8.3 billion, accounting for around 7% of its total of $115 billion. With a 2028 goal of reaching $200 billion in FUM, CLI has committed to investing up to A$1 billion to grow its FUM Down Under, a focus that comes a decade after the previous board and management sold its key assets in Australia to concentrate on faster-growing markets such as China.
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CLI’s recent investor day highlighted its plans to acquire Wingate, a move that was confirmed with the announcement on Dec 16, following earlier reports by the Australian media in November. Wingate is one of Australia’s leading private credit investment managers, with a track record of completing more than 350 transactions worth over A$20 billion.
CLI and Wingate have already established a partnership through the A$265 million Australia Credit Program (ACP), which closed in September. According to CLI, Wingate will contribute to its extensive deal origination network, provide access to more institutional and private high-net-worth investors, and increase its exposure to Australia.
CLI’s group CFO, Paul Tham, believes that besides Australia, there are also significant private credit opportunities in other Asia Pacific markets, including South Korea, India, and Japan. He adds that Australia is a focus market with potential for growth as CLI accelerates its geographical diversification efforts.
CLI states that the Australian private capital market has grown by 33% in the last 18 months, with assets under management reaching A$139 billion. By 2028, a projected commercial mortgage funding gap of A$146 billion is expected. With the acquisition of Wingate, CLI will further diversify its portfolio, which currently consists of logistics, business parks, office, and lodging assets across nine cities in Australia.
As of Sept 30, CLI manages 34 logistics properties and business parks and four Grade A office buildings in Australia. It also has over 13,500 lodging units in more than 150 properties through its wholly-owned lodging business unit, The Ascott. The acquisition of Wingate will strengthen CLI’s presence and growth potential in the Australian market.