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Singapore-Based Real Estate Company to Simplify Its Corporate Structure into Four Main Units
by Rachel McCormack, 16:47, January 3
Exit from Home and Office Segments, But Keeping Malls and Serviced Residence Investments
Southeast Asia's largest property developer by market value, CapitaLand (SGX:C31), has announced a corporate revamp which involves its exit from projects in the United Kingdom, India and the Middle East, Bloomberg reported on 3 January 2013. As part of the organisational change the Singapore-based company will also reassess its investment in Australia’s Australand Property Group (ASX:ALZ) and focus on its core markets of Singapore and China, which together account for more than half of its revenue.
CapitaLand’s chief executive Lim Ming Yan told reporters in Singapore today that the real estate firm will exit its commercial and residential investments in the UK, India and the Gulf Cooperation Council, a six-member trade bloc in the Middle East.He remarked, however, that the planned exits will not include the company’s serviced residence and malls businesses in the regions.
According to its 2011 annual report, CapitaLand has an investment in an office and information technology park project in the suburbs of Mumbai and an office building in London. Without identifying these developments,Mr Lim stated today that it did not make sense for the company to “fully engage” in India at this time and it will get out of one “small” project there as well as an office building in London.
Australian Business Also Under Review
CapitaLand,which is about 40 per cent-owned by Singapore state investor Temasek Holdings, also announced that is reviewing its presence in Australia. Although Australand Property Group contributed S$5.2 billion (£2.6 billion), or about 15 per cent of CapitaLand's total assets at the end of September 2012, Mr Lim said that the company views it as a "financial investment" that is not integrated with its other businesses. The company’s CEO added that the group has not made any firm plans for its 59 per cent stake in the unit and is in "no hurry to exit any investment.”
According to some analysts, the strategic review of CapitaLand’s Australian business also comes as some local rivals are eyeing the unit's assets.In recent weeks, Australand has become an acquisition target for its Australian peers. Last month, the CapitaLand’s unit rejected property developer GPT Group’s (ASX:GPT) bid for its commercial property and industrial assets. Meanwhile, it is understood that real estate company Mirvac Group (ASX:MGR) is also considering a takeover offer for Australand and has appointed Citigroup as financial adviser for the negotiations.
In his statement, Mr Lim added that CapitaLand will also review its businesses in other markets including Japan, Vietnam and Europe.
New Roles and New Focus
As part of its corporate revamp, CapitaLand has now organised its businesses into four main areas - CapitaLand Singapore, CapitaLand China, shopping mall developer CapitaMalls Asia(SGX:JS8) and serviced residence business The Ascott Ltd.Commenting on the company’s new focus, Mr Lim said: "The changes will significantly simplify the organisational structure to provide greater clarity and sharper focus for CapitaLand."
Along with the reorganisation, CapitaLand has also made some key management changes. The firm named Mr Lim as president and chief executive officer of the group after Liew Mun Leong retired last year from the company he helped create almost 12 years ago. Mr Lim who was the chief operating officer at CapitaLand, started in his new role on January 1st. Recently, the property developer also announced that CapitaLand Singapore will be helmed by Wen Khai Meng, while Jason Leow will be responsible for the group’s Chinese business.
Following the news of its new structure, CapitaLand’s share price gained 2.1 percent to S$3.84 at the close of trading in Singapore, while CapitaMalls Asia’s share price rose 3.5 per cent to S$2.06 -- its biggest gain since November 22nd.
http://invezz.com/news/real-estate/1117-capitaland-to-exit-uk-and-india-and-focus-on-core-markets
by Rachel McCormack, 16:47, January 3
Exit from Home and Office Segments, But Keeping Malls and Serviced Residence Investments
Southeast Asia's largest property developer by market value, CapitaLand (SGX:C31), has announced a corporate revamp which involves its exit from projects in the United Kingdom, India and the Middle East, Bloomberg reported on 3 January 2013. As part of the organisational change the Singapore-based company will also reassess its investment in Australia’s Australand Property Group (ASX:ALZ) and focus on its core markets of Singapore and China, which together account for more than half of its revenue.
CapitaLand’s chief executive Lim Ming Yan told reporters in Singapore today that the real estate firm will exit its commercial and residential investments in the UK, India and the Gulf Cooperation Council, a six-member trade bloc in the Middle East.He remarked, however, that the planned exits will not include the company’s serviced residence and malls businesses in the regions.
According to its 2011 annual report, CapitaLand has an investment in an office and information technology park project in the suburbs of Mumbai and an office building in London. Without identifying these developments,Mr Lim stated today that it did not make sense for the company to “fully engage” in India at this time and it will get out of one “small” project there as well as an office building in London.
Australian Business Also Under Review
CapitaLand,which is about 40 per cent-owned by Singapore state investor Temasek Holdings, also announced that is reviewing its presence in Australia. Although Australand Property Group contributed S$5.2 billion (£2.6 billion), or about 15 per cent of CapitaLand's total assets at the end of September 2012, Mr Lim said that the company views it as a "financial investment" that is not integrated with its other businesses. The company’s CEO added that the group has not made any firm plans for its 59 per cent stake in the unit and is in "no hurry to exit any investment.”
According to some analysts, the strategic review of CapitaLand’s Australian business also comes as some local rivals are eyeing the unit's assets.In recent weeks, Australand has become an acquisition target for its Australian peers. Last month, the CapitaLand’s unit rejected property developer GPT Group’s (ASX:GPT) bid for its commercial property and industrial assets. Meanwhile, it is understood that real estate company Mirvac Group (ASX:MGR) is also considering a takeover offer for Australand and has appointed Citigroup as financial adviser for the negotiations.
In his statement, Mr Lim added that CapitaLand will also review its businesses in other markets including Japan, Vietnam and Europe.
New Roles and New Focus
As part of its corporate revamp, CapitaLand has now organised its businesses into four main areas - CapitaLand Singapore, CapitaLand China, shopping mall developer CapitaMalls Asia(SGX:JS8) and serviced residence business The Ascott Ltd.Commenting on the company’s new focus, Mr Lim said: "The changes will significantly simplify the organisational structure to provide greater clarity and sharper focus for CapitaLand."
Along with the reorganisation, CapitaLand has also made some key management changes. The firm named Mr Lim as president and chief executive officer of the group after Liew Mun Leong retired last year from the company he helped create almost 12 years ago. Mr Lim who was the chief operating officer at CapitaLand, started in his new role on January 1st. Recently, the property developer also announced that CapitaLand Singapore will be helmed by Wen Khai Meng, while Jason Leow will be responsible for the group’s Chinese business.
Following the news of its new structure, CapitaLand’s share price gained 2.1 percent to S$3.84 at the close of trading in Singapore, while CapitaMalls Asia’s share price rose 3.5 per cent to S$2.06 -- its biggest gain since November 22nd.
http://invezz.com/news/real-estate/1117-capitaland-to-exit-uk-and-india-and-focus-on-core-markets
