Singapore's CapitaLand to buy real estate group from Temasek for $4.4 bln (updated)

CapitaLand India Trust

14/01/2019 01:45

* Deal to create Asia's largest diversified real estate
group 
    * Temasek to get paid half in cash, half in new CapitaLand
shares

 (Adds details of transaction)
    SINGAPORE, Jan 14 (Reuters) - Singapore's CapitaLand
 CATL.SI  is buying the owner of a clutch of real estate
investment trusts from state investor Temasek  TEM.UL  for about
$4.4 billion, in a deal the developer said will create the
largest diversified property group in Asia.
    CapitaLand will buy the holding companies of the business of
the Ascendas-Singbridge Group, which manages Ascendas Real
Estate Investment Trust  AEMN.SI , Ascendas India Trust
 AINT.SI  and Ascendas Hospitality Trust  ASHP.SI , for cash and
stock.
    The deal will create a group with combined total assets
under management of more than S$116 billion ($85.81 billion),
CapitaLand and Ascendas-Singbridge said in a joint statement on
Monday. 
    Ascendas-Singbridge is mainly a business space provider,
including of logistics and business parks as well as data
centres.    
    "Our complementary strengths position us strongly for growth
amidst the changing real estate environment in Singapore and
internationally," Ng Kee Choe, chairman of the board of
CapitaLand, said in the statement.
    The target companies have a combined enterprise value of
S$10.9 billion. 
    Under the agreement, Temasek will effectively receive about
S$6 billion, half in cash and half in new CapitaLand shares,
which will be priced at S$3.50 a piece.
    After the deal closes, Temasek's stake in CapitaLand will
increase to about 51 percent from about 40.8 percent.
($1 = 1.3519 Singapore dollars)

 (Reporting by Aradhana Aravindan; Editing by Richard Pullin and
Muralikumar Anantharaman)
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net))