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CapitaLand Limited
Annual Report 2015
CapitaLand Fund Management
A leading real estate fund
manager in Asia
CapitaLand manages a total of 16 non-listed real estate
vehicles and five listed real estate investment trusts (REITs)
with an aggregate Assets Under Management (AUM) of
S$46.0 billion.
The majority of the assets managed are located in
CapitaLand’s core markets of Singapore (36.7%) and China
(49.3%). CapitaLand is one of the highest-ranked Asian
players by real estate assets managed globally based on both
the ANREV/INREV/NCREIF Fund Manager Survey
1
and the
IPE Real Estate Top 100 Investment Management Survey
2
conducted in 2015.
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 include 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 vehicles and assets also enhances the Group’s overall
return on equity.
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 and match the right capital
pricing with the appropriate real estate exposure across a
wide risk-reward spectrum. Capital can be redeployed into
new higher-yielding opportunities, while a significant stream of
stable income can be retained through its equity interests in
these listed REITs.
Fund management and capital partnership remain the
cornerstone of CapitaLand’s business model. In 2015,
CapitaLand, through Ascott, entered into a joint venture
with Qatar Investment Authority to set up a US$600 million
(approximately S$809 million) serviced residence fund.
With a target to launch six new funds with total AUM of up to
S$10 billion by 2020, this joint venture is part of CapitaLand’s
efforts to further grow its fundmanagement business. CapitaLand
will also continue to focus on building relationships with capital
partners to ensure a robust pool of alternative funding sources
to support the Group’s growth.
1
The ANREV/INREV/NCREIF Fund Manager Survey 2015 explores total real estate assets under management of all real estate fund management
companies. ANREV refers to the Asian Association for Investors in Non-Listed Real Estate Vehicles. INREV refers to the European Association for
Investors in Non-Listed Real Estate Vehicles. NCREIF refers to National Council of Real Estate Investment Fiduciaries in the United States.
2
The Investment Pension Europe (IPE) Real Estate Top 100 Investment Management Survey provides a snapshot of an evolving global industry which
tracks the largest 100 real estate managers by assets under management.
3
Denotes total assets of REITs and non-listed real estate vehicles.
4
Includes private equity fund, club deals and JVs with capital partners.
Total Assets Under Management (AUM)
3
(S$ Billion)
FY 2015 AUM Breakdown - By Geography
(S$ Billion)
30.4
34.4 37.1 39.2
42.4
46.0
CAGR 8.7%
2010
Singapore China
Japan India Vietnam
Malaysia
Asia &
Europe
2011 2012 2013 2014
2015
2 REITs
1 REIT
1.4
2 non-
listed
0.002
1 non-
listed
0.2
1 non-
listed
0.2
1 REIT
11 non-listed
1 REIT
1 non-listed
16.9
20.2
4.6
2.5
REITs
Non-listed Real Estate Vehicles
4
