CapitaLand Investment has closed its S$280 million ($214 million) purchase of a 40 percent stake in SC Capital Partners, completing the first tranche of a deal that could see it attain full ownership of the Singapore-based fund manager by 2030.

The closing was announced in a stock filing by Japan Hotel REIT, the Tokyo-listed trust whose manager is controlled by SC Capital. The outline of the deal has not changed since the acquisition was announced four months ago, according to the document.

Temasek-backed CapitaLand Investment has options to acquire two additional 30 percent stakes on the third and fifth anniversary of the transaction’s closing date of 7 March 2025. Representatives for the two companies did not reply to Mingtiandi’s emailed requests for comment on the milestone.

“Our strategic partnership with CLI will enable SC Capital Partners to gain access to additional resources, enabling us to accelerate capital deployment and achieve scale, which is becoming increasingly important,” chairman Suchad Chiaranussati said in November. “Together with CLI, we look forward to driving continued strong performance and are committed to creating value for our investors.”

Tripling Up in Japan

SGX-listed CapitaLand is set to triple its funds under management in Japan while growing its business across Asia Pacific with the purchase of the firm founded in 2004 by Thai financier Suchad, who is expected to retain full autonomy over the business until the sale of the remaining 60 percent stake.

As part of the partnership, CapitaLand Investment will invest a minimum of S$524 million ($400 million) in SC Capital’s fund strategies to support the growth of the platform and strengthen investor alignment. SC Capital will continue to operate independently until the full sale of the business is completed, while CapitaLand Investment will participate at the board level in investment strategies that require the use of strategic capital.

Acquiring the initial 40 percent stake in SC Capital increases CapitaLand Investment’s funds under management by S$11 billion to S$113 billion, with CEO Lee Chee Koon having noted the complementary nature of the partners’ portfolios in terms of geographies and sectors.

“This acquisition is one of the strategic thrusts to scale up our capabilities and build bench strength across our focus markets, accelerating CLI’s growth as a global real asset manager to create greater value for our stakeholders,” Lee said in November.

Hospitality Strength

SC Capital’s managed funds include sponsorship of Japan Hotel REIT, a $4.5 billion hospitality trust, with the remaining S$4.9 billion deployed across private funds.

Market sources confirmed to Mingtiandi last month that the REIT had held talks with fund managers KKR and Gaw Capital Partners on a potential JPY 100 billion ($660 million) sale of the Hyatt Regency Tokyo to the trust. The REIT’s manager issued a statement at the time in which it denied having engaged “in any discussions or considerations regarding the acquisition of the said property by JHR”.

Japan accounts for 76 percent of SC Capital’s portfolio by geography, while lodging represents 76 percent of funds under management by sector. SC Capital’s other markets include Australia and New Zealand, Southeast Asia, Greater China, South Korea and the Maldives, with non-hospitality investments spanning office, retail, new economy, residential and other sectors.