CapitaLand Investment (CLI) CEO has reiterated the group’s ardent commitment to an Asia-centric expansion strategy, which views Asia as the key driving engine in this uncertain global economic environment. In an exclusive interview to discuss the company’s outlook and strategic visions, the CEO identified Asia’s inherent structural growth drivers, such as urbanization and an expanding middle-class demographic, that fuel steady demand in the property and alternative sectors.
The CEO also noted that Asia remains a favorable source of risk-adjusted returns compared to other geographies, especially for countries including Singapore, China, India, and Vietnam, and gateway cities in Southeast Asia. The CEO announced that CapitaLand Investment intends to expand its footprint in such geographies using a balanced approach involving organic growth, partnerships, and acquisitions.
“Singapore is, and continues to be, the nerve center for our global business in CapitaLand Investment,” said the CEO. The company is able to manage its capitals, investment, and asset management from its head office located in Singapore. The favorable regulatory framework, sound financial infrastructure, and talent base were some factors that were highlighted to empower the company to manage its capitals effectively in Asia with sound governance.
The CEO highlighted that a diversified portfolio like that of CLI, which includes commercial offices, retail, logistics, data centers, accommodation, and residential properties, is able to mitigate fluctuations in the market cycle. Within the Asian market, a specific focus on ‘logistics and industry properties is being pursued by this company on account of the growth in the adoption of e-commerce and changes in the supply chain model,’ as well as growth in manufacturing. Another area that has been recognized as a notable growth driver is ‘data centers.
Apart from its conventional real estate, CapitaLand Investment is also moving forward with its expansion in private capital and alternative investments. According to its CEO, private funds, credit strategies, and thematic investment vehicles have better scalability and capital efficiency, so the group can increase its assets under management without growing balance sheet risk. This will be supported by the evolving nature of capital markets in Asia.
Sustainable practices and responsible investment continue to feature prominently in the growth strategies for CapitaLand Investment in the Asian region. The CEO reiterated the group’s continued emphasis on the integration of environmental, social, and governance principles into the development and management of assets. It aims to develop and improve energy efficiencies, green building standards, and smart urban solutions, especially in the more densely populated cities in the Asian region.
The CEO also covered challenges that are geopolitical and macroeconomic in nature. The CEO acknowledged that global uncertainties, interest rates, and shifts in policies are areas that demand proper risk management. The CEO, however, clarified that there is no disruption in the overall Asia story. The extensive reach of CapitaLand Investment was seen as one of the major strengths that help the company manage the challenges effectively.
Going forward, the CEO stated that CapitaLand Investment plans to further optimize its portfolio, re-allocated capital from mature sources, and re-invest them in the growth opportunities it finds in Asia. It also seeks innovative asset classes, as well as mixed-used development schemes that adapt to the work-life trends in the said region. Conclusion of the speech, the CEO said that the focusing on the Asian market in CapitaLand Investment is not a tactical move for the short term. But for the long term, the group plans to manage its capital discipline and governance and come out with positive contributions to the development of the Asian cities.
