CapitaLand Investment (CLI) has recently solidified its presence in South-east Asia’s real estate market by completing the acquisition of three strategic properties through its logistics platform, CapitaLand Sea Logistics Fund (CSLF). These acquisitions signify CLI’s commitment to further diversify its investment portfolio and tap into promising opportunities in the region’s burgeoning logistics and industrial sectors. In December 2023, CSLF successfully secured a 20-hectare freehold greenfield site in Bangkok, Thailand, marking CLI’s maiden venture into the Thai logistics property market. This milestone acquisition aligns with CLI’s strategic vision to expand its footprint across key South-east Asian markets and capitalize on the region’s growing demand for modern logistics facilities.
The recent acquisitions also include a freehold industrial asset and another industrial asset located near Holland Village, Singapore. The latter comes with an advantageous long land lease tenure, offering stability and potential for long-term development. Upon completion of these acquisitions, CLI intends to leverage its expertise to transform both assets into state-of-the-art self-storage facilities, catering to the evolving needs of businesses and consumers in the region.
CSLF is poised to embark on an ambitious development project for the freehold site in Bangkok, envisioning an automated logistics campus with a gross floor area of approximately 2.5 million square feet. This innovative campus, comprising two buildings, is designed to accommodate up to 150,000 pallet positions in an automated storage and retrieval system. Once operational, it will emerge as Thailand’s largest standalone warehouse, further bolstering CLI’s position as a leading player in the regional logistics landscape.
The construction for the Bangkok campus is slated to commence in the first half of 2024, with the first phase scheduled for completion by 2026. In addition to the aforementioned acquisitions, CLI recently concluded a joint acquisition of a lodging property through CapitaLand Wellness Fund in January 2024. Collectively, these investments represent a total commitment of approximately S$700 million, underscoring CLI’s confidence in the region’s growth potential and its dedication to delivering value to investors.
The successful execution of these acquisitions is expected to significantly enhance CLI’s funds under management in South-east Asia, reaching an estimated S$1.2 billion. Patricia Goh, Chief Executive of South-east Asia Investment at CLI, expressed optimism about the prospects of these investments, stating, “These latest acquisitions are set to fuel the next stage of growth for each of these CLI-managed funds.” She emphasized the collaborative approach, combining value creation initiatives with best-in-class operational capabilities, and leveraging the sector-specific expertise of capital partners and operators to ensure sustainable returns for investors.
The market responded positively to CLI’s strategic moves, with the company’s shares closing at S$2.89 on Wednesday, reflecting a 1.8 per cent increase. As CLI continues to expand its presence and investment portfolio in South-east Asia, it remains poised to capitalize on emerging opportunities and drive sustainable growth in the region’s real estate sector.
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