CapitaLand Investment Limited (CLI) is set to acquire a 40% stake in the prominent real estate investment manager, Sc Capital Partners Group (SCCP), for a substantial S$280 million (US$214 million). This strategic investment, announced recently, marks a significant move for CLI to expand its footprint in the Asia Pacific real estate market. The initial acquisition is expected to be completed in the first quarter of 2025, pending regulatory approvals, and will be funded through cash reserves.
The agreement outlines a phased acquisition approach, allowing CLI to progressively increase its stake in SC Capital Partners over the next five years. Ultimately, CLI is positioned to attain full ownership of SCCP by 2030, contingent on fulfilling agreed-upon conditions. This structured approach ensures a smooth transition and integration of SCCP into CLI’s expanding portfolio.
SC Capital Partners, headquartered in Singapore, has established itself as a leading real estate investment manager in the Asia Pacific region. With a strong presence across eight key locations in the region, SC Capital Partners boasts an impressive S$11 billion in funds under management. This partnership with CLI will further enhance SCCP’s growth trajectory and market reach.
In addition to the equity stake acquisition, CLI will commit a minimum of S$524 million (US$400 million) as strategic capital directly into SC Capital Partners’ fund strategies. This significant capital injection will support the expansion and development of SCCP’s platform, reinforcing CLI’s commitment to fostering growth and innovation within the partnership. Crucially, SC Capital Partners will maintain its independent operations until CLI secures the remaining 60% stake, ensuring business continuity and leveraging SCCP’s established expertise.
The collaboration between CLI and SC Capital Partners is poised to create a formidable force in the real estate investment landscape. By combining their listed and private funds management platforms, CLI aims to significantly broaden its network and enhance its capabilities across vital Asia Pacific markets and sectors. These sectors include hospitality, residential living, and the rapidly growing renewables sector, presenting diverse opportunities for expansion and value creation.
Squire Patton Boggs acted as legal advisor to SC Capital Partners on this significant transaction. The Squire Patton Boggs team, led by senior associate Matt Lappin, director Calum Thom, and partner Julian Thatcher, provided expert counsel to Mr. Suchad Chiaranussati, Chairman and Founder of SCCP. Their involvement underscores the complexity and international scope of this multi-jurisdictional deal.
This strategic alliance between CapitaLand Investment and SC Capital Partners represents a major development in the Asia Pacific real estate investment sector. It not only expands CLI’s market presence but also provides SC Capital Partners with enhanced resources for continued growth and success.
