Positioning for the Future | 75
2010
2011
2012
2013
Restated
2014
30.4
34.4
37.1
39.2
42.4
CapitaLand Fund Management
CapitaLand is a leading real estate fund
manager in Asia, managing a total of
16 non-listed real estate vehicles and mve
listed Real Estate Investment Trusts (REITs)
with an aggregate Assets Under Management
(AUM) of S$42.4 billion. The majority of the
assets managed are located in CapitaLand’s
core markets of Singapore (38.7%) and China
(47.7%). Total management fees received by
the Group for its fund management business
in 2014 totalled S$145 million.
CapitaLand has a dedicated fund management unit that
works with the Group’s business units in the origination,
structuring and raising of private funding from global
capital partners. As a real estate developer-operator-owner
with multi-sector expertise and deep local knowledge of
the overseas markets it operates in, CapitaLand is able
to structure and customise a diverse variety of investment
options for its capital partners. The Group has a
respectable stable of global capital partners that includes
sovereign wealth funds, pension funds and insurance
companies. Non-listed real estate vehicles range from
private equity funds, club deals, to joint ventures,
where CapitaLand has a meaningful co-investment
stake that aligns the Group’s interest with that of its
capital partners.
Through its non-listed real estate vehicles and listed
REITs, CapitaLand is able to diversify its funding sources
while expanding its AUM. The fee income generated
from managing such funds and assets also enhances the
Group’s overall return on equity. The fund management
business offers an efmcient capital recycling platform
for the Group through which it matches the right capital
pricing with the appropriate real estate exposure across a
wide risk-reward spectrum.
The non-listed real estate vehicles managed by
CapitaLand are typically invested in development
and value-added plays which aim to generate higher
risk-adjusted returns and capital appreciation for
CapitaLand and its capital partners. Once the assets
in these non-listed real estate vehicles have matured
into core assets and generate stable yields, there is the
available option of recycling these stabilised assets into
the listed REITs. Through this capital recycling process,
CapitaLand is able to realise some investment returns,
redeploy capital into new higher-yielding opportunities,
while retaining a signimcant stream of stable income
through its equity interests in these listed REITs.
Fund management and capital partnership remain
the cornerstone of CapitaLand’s business model.
CapitaLand will continue to grow its AUM through accretive
acquisitions, developments and asset enhancement
initiatives and will focus on building relationships with
capital partners to ensure a robust pool of alternative
funding sources to support the Group’s growth.
FY 2014 AUM Breakdown by Geography
(S$ billion)
Total AUM
1
(S$ billion)
Singapore China
Malaysia Japan India Vietnam
Asia &
Europe
2 REITs
1 REIT
1 REIT
2 non-
listed
1 non-
listed
1 non-
listed
1 REIT,
12 non-listed
CAGR 8.7%
16.4
17.9
3.9
1.3
0.3
0.2
0.1
2.3
REITs
Non-listed Real Estate Vehicles
2
1
Denotes total assets of REITs and non-listed real estate vehicles.
2
Includes private equity funds, club deals and JVs with capital partners.
Business Review
