Singapore-based real estate major CapitaLand announced a corporate restructuring plan this morning via an exchange release, soon after it requested for a trading halt on its stock and its units CapitaLand Integrated Commercial Trust, CapitaLand China Trust, Ascott Residence Trust, and Ascendas India Trust. The company proposes to consolidate its investment management platforms and its lodging business into a new entity CapitaLand Investment Management (CLIM), which will be listed by introduction on the SGX. Further, it plans to place the real estate development business under private ownership, which will be held by CLA Real Estate (CLA), CapitaLand’s controlling shareholder, through the proposed privatization of CapitaLand. Post the restructuring, CLIM will have an AUM of S$115bn ($85.7bn), the largest real estate investment manager in Asia and third largest globally. As per the filing, CapitaLand will distribute ~48% of shares in CLIM to all its shareholders excluding CLA (Eligible Shareholders). Given that this will be a 1-for-1 distribution, the share ownership ratio in CLIM post the issuance of CLIM shares will be equal to the Eligible Shareholders’ existing ownership in CapitaLand. The filing further states, “Eligible Shareholders are expected to receive S$4.102 per share in cash and scrip for every one CapitaLand share they own. This is 24% above the last traded price of CapitaLand and represents a premium of 27% to the one-month volume-weighted average price (VWAP).”

CapitaLand’s SGD 3.8% 2024s are trading stable at 107.56 yielding 1.53%.
For the exchange filing, click here
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