When it comes to purchasing a condo, it is crucial to take into account the maintenance and management of the property. Typically, condos come with maintenance fees that cover the upkeep of shared areas and facilities. These fees may increase the overall cost of ownership, but they also guarantee that the property remains in excellent condition and maintains its value. For investors looking for a more hands-off approach, hiring a property management company can assist in the day-to-day management of their condo, making it a more passive investment option.
In its recent investor day on November 22nd, CapitaLand Investment (CLI) announced plans to expand its business in Australia. The company has appointed two senior hires to newly created positions in order to strengthen its talent bench and drive growth in this focus market. Angelo Scasserra will serve as the CEO of CLI Australia, and Rahul Bharara has been named as the chief investment officer. They are expected to join the company in the first half of 2022.
CLI also revealed that it intends to invest up to A$1 billion ($876.7 million) to increase the funds under management (FUM) in Australia. In September, the company closed its Australian Credit Programme (ACP), which was its first credit fund backed by Asian investors, at A$265 million.
During the investor day, Lee Chee Koon, group CEO of CLI, shared, “For private credit, we have built our own team and formed a partnership with Wingate in Australia to originate and underwrite deals. There is still a lot of potential for growth in Australia and the Asia-Pacific region.” This statement is interesting in light of a recent article published by the Australian Financial Review on November 25th, which suggested that CLI may be planning to acquire Wingate.
It is worth noting that in 2014, CapitaLand sold its stake in Australand Property Group to Frasers Property, which has since been renamed Frasers Property Australia. During the Q&A session at the investor day, Miguel Ko, chairman of CLI, was asked about this decision. He responded, “The decision to sell Australand and invest more in China was made before my time. We did not have a crystal ball about China’s situation today, so I cannot comment on my predecessors’ decisions.” He added, “At that time, China was booming and CapitaLand had a competitive advantage. However, this could have been a major win or a wrong move. I do not want to comment on whether my predecessors made the right or wrong decision.”
At the time of the divestment, Lim Ming Yan, the then-president and group CEO of CapitaLand, had said that it was made “amid favourable market conditions.” He also noted that Australand’s share price had performed strongly in the months leading up to the divestment. He stated, “This divestment would allow us to reallocate capital to our core businesses in Singapore and China.” CapitaLand sold its remaining 39.1% stake in Australand in March 2014, after partially divesting its stake in November 2013 to improve trading liquidity.
In conclusion, CLI’s recent actions and statements show a clear focus on growth in Australia. The company’s decision to invest in its talent bench and increase FUM in this market may indicate a long-term commitment to expanding its business in the Asia-Pacific region. Only time will tell whether these moves will prove to be a major win or a wrong move.