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Annex - Highlights of CLI’s private fund management growth in 2024

CLI made two strategic mergers and acquisitions in 2024 to strengthen its fund management capabilities for its next phase of growth amidst global economic uncertainties.  In November 2024, CLI entered into an agreement to acquire a 40% stake in SCCP, with the remaining stake to be acquired in phases over the next five years^[3].  The transaction has increased CLI’s FUM by S$11 billion to a combined FUM of S$113 billion.  CLI has also deepened its presence in its focus market of Japan and cemented its position as one of Asia Pacific’s largest real estate investment trust (REIT) managers by market capitalisation^[4] with the addition of the manager of SCCP’s Japan Hotel REIT (JHR). 

In December 2024, CLI announced its acquisition of Wingate’s property and corporate credit investment management business as well as the close of CLI’s maiden credit fund, Australia Credit Program, which was originated in partnership with Wingate.  The acquisition of Wingate has expanded CLI’s access to more institutional and private high net worth investors and increased its footprint in another of its focus market Australia.

Despite a challenging environment in 2024, CLI successfully launched eight new funds with S$2.2 billion in committed equity, of which S$1.7 billion was third-party capital.  In 2024, CLI deployed S$2.1 billion across thematic sectors such as lodging, wellness, private credit, logistics and self-storage.

CLI successfully tapped on domestic private capital to expand its presence in China while being disciplined in capital management.  In January 2024, CLI recapitalised Capital Square Beijing by divesting its 95% stake in the property to a joint venture in China.  In November 2024, CLI secured the first close of its sixth onshore renminbi (RMB) fund, China Business Park RMB Fund III (CBPF III), with an initial equity commitment of RMB1.2 billion (S$222 million) from an onshore major institutional investor to invest in the business park sector in China.  CLI recapitalised Ascendas iHub Suzhou by divesting it as a seed asset to CBPF III.  CLI continues to manage both properties which contributes to its recurring fee income.

A testament to CLI’s global lodging management and fund management capabilities, CLI established CapitaLand Ascott Residence Asia Fund II (CLARA II) in February 2024 to invest in lodging properties amidst growing demand.  With a target equity size of US$600 million (S$800 million), CLARA II will invest in serviced residences and coliving properties in gateway cities in key developed Asia Pacific markets.  CLARA II is CLI’s second private fund that focuses on serviced residence and coliving assets.  It is the follow-on fund to the US$600 million (S$800 million) Ascott Serviced Residence Global Fund.  CLARA II leverages the global operating expertise of The Ascott Limited (Ascott), a lodging business unit wholly owned by CLI, to manage its quality portfolio of resilient and green-certified lodging assets, further creating value for its investors.  CLARA II has acquired two seed assets via a 50% stake in lyf Bugis Singapore and a 100% stake in lyf Shibuya Tokyo in Japan from Ascott.
 

_{Notes
[3] Subject to the fulfilment of conditions.
[4] Bloomberg as at 31 December 2024.}