CapitaLand Investment to buy Wingate’s property and corporate credit business

Global real asset manager CapitaLand Investment will expand its presence in Australia after buying the Wingate property and corporate credit investment management businesses.

CapitaLand Investment will expand its presence in Australia with the acquisition the property and corporate credit investment management businesses of Melbourne-based Wingate.

Global real asset manager CapitaLand Investment will expand its presence in Australia with the acquisition of the property and corporate credit investment management businesses of Melbourne-based Wingate.

Headquartered and listed in Singapore, CLI has about S$134bn ($155bn) under management and the deal will see it expand its private credit business and its property portfolio in Australia through Wingate, which will be a subsidiary.

Wingate’s portfolio division – incubating and co-investing in platform businesses – is not part of the transaction.

The deal, reportedly worth around $200m, should see the private credit pioneer enlarge CLI’s extensive proprietary deal origination networks and enhance its access to more institutional and private investors.

Founder and chief executive of Wingate, Farrel Meltzer, will transition the executive leadership of Wingate’s property and corporate credit business to current managing director of Wingate Property, Nick Jacobson. He will assume the title of Wingate’s managing director in the coming months and the company will remain in Australia.

Wingate founder and chief executive Farrel Meltzer.

Mr Meltzer said he believed Wingate employees, co-investors and clients would benefit greatly from the partnership with CLI, which will give them access to a range of global best-in-class investment opportunities.

“This partnership will bring fresh international perspectives, create seamless cultural and operational synergy, and further elevate the platform’s already high standards of co-investor management.” he said.

Mr Meltzer, who founded Wingate in 2004, will continue to serve as a non-executive director of the company and a senior adviser to CLI in Australia, as well as CLI’s private credit business globally.

Wingate’s principal investment and related strategies, including portfolio companies ORDE Financial, Fifo Capital, Talaria Asset Management and the Specialised Finance Fund, are excluded from the transaction.

The assets will be spun out of Wingate and into Fancourt Capital Group, a new dedicated investment firm that will continue to be owned by the current Wingate shareholder group.

FCG will be chaired by Mr Meltzer and led by Yoni Cukierman, current managing director of Wingate’s principal investment strategy, as FCG’s chief executive.

Wingate manages more than $8bn in funds and funded $20bn in property value, and supported the construction of more than 20,000 homes for Australians.

Wingate was an early private credit platform company, which is part of one of the strongest growing areas in the debt markets, as non-bank lenders fill the lending hole left by the big banks.

The final transaction close is subject to the fulfilment of conditions, including regulatory approval and is expected to be completed in the coming months.

CapitaLand Investment Group CFO Paul Tham.

CLI Group chief financial officer Paul Tham said they were excited to welcome Wingate into the company’s “global ecosystem”.

He said Wingate was a leading credit platform and they have committed to invest up to $1bn to grow their funds under management in Australia.

“As we accelerate our geographical diversification efforts, Australia is one of CLI’s focus markets where we see significant potential for growth,” Mr Tham said.

“Australia will play a greater role in contributing to CLI’s FUM (Funds Under Management) as we strive towards our S$200bn FUM target in 2028.

“As we strengthen our position as a leading global real asset manager, we will continue to seek opportunities to scale our Australian presence through our listed funds, private funds as well as our commercial and lodging management businesses to drive fee income growth for CLI.”