CapitaLand is looking to invest between S$5 billion and S$6 billion this year, after committing over S$6 billion towards new investments in 2010, said CEO Liew Mun Leong.
This could include purchases of sites and mergers and acquisitions.
Property cooling measures announced by the Singapore and China governments will help stabilise the respective markets and the group is hoping to ride on this opportunity to secure acquisitions at “more realistic” prices, said Mr. Liew.
CapitaLand also wants to originate more Reits and private equity funds when appropriate, said Wen Khai Meng, Chief Investment Officer of the group.
CapitaLand now manages 17 private equity funds and six Reits with assets under management (AUM) of around S$30.4 billion at end-2010, up S$25.6 billion as of end-2009. This makes the group one of Asia’s largest real estate fund managers.
Market watchers suggest that CapitaLand could originate new private funds for retail, residential and serviced apartment properties in its key markets like Singapore, Malaysia, Vietnam and China.
The group could also float a Reit that holds its Raffles City projects in China.
CapitaLand will be aggressive in seeking investments but disciplined at the same time, said Mr. Liew. The group also prefers to acquire residential sites in Singapore through collective sales, especially through private treaty negotiations.
Aside from cash of S$7.2 billion on its balance sheet as of end-2010, CapitaLand can borrow another S$6 billion, assuming a 0.5 gearing ratio. “So we have enormous capacity for investment and growth in our business portfolio,” he said.