CapitaLand Investment begins trade as one of largest listed REIMs

Capital Tower and 79 Robinson Road in Singapore's Central Business District (CBD). Photo credit: Rendy Aryanto/WS. sg; CapitaLandCapital Tower and 79 Robinson Road in Singapore's Central Business District (CBD). Photo credit: Rendy Aryanto/WS. sg; CapitaLand

CapitaLand Investment (CLI) made its trading debut Monday as one of the world’s largest listed real estate investment managers (REIMs), marking a major step in the restructuring of storied property developer CapitaLand.

Shares of CLI, which trade under stock code 9CI, were at S$2.94 at 9:43 a.m. SGT, after opening at S$2.95.

CLI was listed by introduction after CapitaLand restructured into two entities: CLI, which is the real estate investment management business, and CapitaLand Development (CLD), the property development business, which was taken private. Shares of CapitaLand will be delisted Tuesday.

CLI  had around S$119 billion of real estate assets under management as of end-June, with more than 80 percent based in Asia, the company said in a filing to SGX Monday. The real estate funds under management business was at around S$83 billion, held in six listed real estate investment trusts (REITs) and business trusts, and in more than 20 private funds, the filing said.

The REIM plans to operate in three areas: Fund management, lodging management and capital recycling.

Miguel Ko, chairman of CLI, said the company sees opportunity as more global capital flows head to Asia and as the market appreciates the value of Asia-based REIMs.

The proposal to restructure CapitaLand was initially announced in March. Under the deal, CapitaLand’s shareholders received around 48.24 percent of CLI shares, a distribution of CapitaLand Integrated Commercial Trust (CICT) units and the acquisition of all CapitaLand shares for S$0.951 each.

CapitaLand Development (CLD) will continue to participate in developing projects and project management services within CLI, the company has previously said. CLI and CapitaLand would also have a reciprocal rights of first refusal for assets and projects.