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Asset Management / Wealth Management
CLI acquires four properties in Southeast Asia
Singapore, Thailand deals to more than double funds under management in the region to S$1.2 billion
The Asset 7 Feb 2024

CapitaLand Investment Limited (CLI) has acquired four properties in Southeast Asia. The latest acquisitions include two industrial properties in Singapore by Extra Space Asia, the Asia-focused self-storage platform managed by CLI. CapitaLand SEA Logistics Fund also acquired OMEGA 1 Bang Na, Thailand, a 20-hectare freehold greenfield site in Bangkok.

In January CapitaLand Wellness Fund completed the joint acquisition of a freehold lodging property in Singapore. Upon the completion of the development of OMEGA 1 Bang Na, the total investment value of the four acquisitions will be approximately S$700 million (US$521.45 million), boosting CLI’s funds under management in the region to S$1.2 billion.

“Despite the challenging market conditions, we have made tremendous progress in deploying capital strategically across Southeast Asia over the past year into assets catering to self-storage, logistics and wellness-hospitality sectors,” says Patricia Goh, chief executive officer of Southeast Asia investment at CLI.

“These sectors have demonstrated strong secular growth in this region and align with our thematic focus of investing in real estate driven by long-term mega trends such as rapid urbanization, supply-chain rationalization, evolving consumer preferences, ageing population and longevity economy. The acquisitions not only demonstrate our deal sourcing and execution capabilities but also underscore our extensive reach and scale in Singapore as we leverage these competencies to expand our presence in the region,” she adds.

ESA, one of the largest self-storage operators in Asia with 80 facilities, is expanding its portfolio in Singapore with approximately 320,000 square feet in gross floor area by the end of Q1 2024.

The proposed expansion includes a freehold industrial asset, and an industrial asset with a long land lease tenure located near Holland Village, a popular residential area surrounded by numerous educational institutions and attractive retail and dining offerings.

Thai logistics campus

CapitaLand SEA Logistics Fund (CSLF), meanwhile, is expanding into Thailand with a state-of-the-art automated logistics campus. CSLF is CLI’s logistics platform in Southeast Asia and held its first fund close in February 2023.

The fund will allocate capital towards the development and management of advanced logistics infrastructure supported by integrated smart warehousing solutions. In December 2023, CSLF acquired its seed asset, a freehold land site, to develop OMEGA 1 Bang Na. This will be CLI’s first logistics property in Thailand.

Located along the Bang Na Trat Highway in Samut Prakan Province, a prime logistics cluster located within the Greater Bangkok Metropolitan area, OMEGA 1 Bang Na offers access to the central business district and key transport nodes such as the Laem Chabang Deep Sea Port and Suvarnabhumi Airport.

As a built-to-suit project, CSLF will develop a state-of-the-art automated logistics campus with a gross floor area of 2.47 million square feet, capable of accommodating over 150,000 pallet positions in an automated storage and retrieval system.

The modern ramp-up campus will be Thailand’s largest standalone warehouse and operated by Ally Logistic Property when completed. The campus will comprise two buildings, each featuring ambient and cold storage capabilities, respectively. Construction is scheduled to commence in 1H 2024 with phase one expected to be completed in 2026.

Wellness-healthcare fund

In October 2023, CLI announced the first close of C-WELL, its inaugural wellness and healthcare-related real estate fund. Anchored in Southeast Asia, the fund’s initial focus will be on Singapore, Thailand and Malaysia. With a target fund size of S$1 billion on an upsized option, C-WELL will invest in single or mixed-used assets across the healthcare, medical, wellness and preventive care spectrum.

C-WELL and The Ascott Limited jointly acquired a freehold lodging property in Singapore in January. Located in the city’s downtown core district within walking distance to both Bugis and Bencoolen MRT train stations, the 308-unit property will be upgraded and rebranded under Ascott’s award-winning lyf (pronounced ‘life’) brand as demand for experience-led social living grows. The property will remain operational throughout the renovation period and be unveiled as lyf Bugis Singapore in mid-2024.

Earlier this month, CLI also announced the close of a new core logistics private fund in Japan. The close-ended fund will grow CLI’s fund under management by 16.5 billion yen (US$115 million). The fund attracted several prominent institutional capital partners in Japan and has been fully deployed to acquire two freehold and green-certified logistics assets located in Greater Tokyo and Osaka from CLI and its joint venture partner. CLI holds a minority stake in the fund and will continue to serve as the asset manager of the two logistics properties.

Photo: OMEGA 1 Bang Na will be CLI's first logistics property in Thailand. 

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