(July 23): Merger talks between two of the largest property asset managers backed by Singapore state investor Temasek Holdings Pte Ltd have stalled on concerns including valuation, according to people familiar with the matter.
CapitaLand Investment Ltd and Mapletree Investments Pte Ltd have slowed down work on the potential combination following months of discussions, the people said, asking not to be identified because the information is confidential.
Other disagreements included how the future leadership of the merged entity could deal with personnel revamps and the weak business performance in some areas, the people said. Still, the companies could resume talks in the future, they added.
CapitaLand Investment shares are down 8% this year through Wednesday close, giving it a market value of US$9.6 billion (RM39.3 billion). Mapletree was valued at S$18.5 billion (US$14.3 billion or RM58.6 billion) as of the end of March, according to a document from Temasek.
Temasek owns a 54% stake in CapitaLand Investment while Mapletree is a wholly-owned subsidiary.
Representatives of CapitaLand Investment and Mapletree declined to comment. Temasek also declined to comment, referring queries to the two firms.
A merger would have shaken up Singapore’s real estate investment trust (REIT) market, which is one of Asia’s largest. CapitaLand Investment has stakes in five REITs on the Singapore stock exchange, while Mapletree backs three. Together, they have a collective market capitalisation of over US$44 billion. CapitaLand Investment also backs listed vehicles in Malaysia, China and Japan.
Their performance has been mixed. Those focused on China and India have produced negative returns in the past year, while CapitaLand Integrated Commercial Trust, Singapore’s largest REIT, has delivered double-digit returns in the same period. Both firms also oversee various private real estate funds.
The two firms have held on-and-off merger talks for years, but they accelerated in 2025 because of year-end strategic reviews, people familiar with the matter have previously said. Negotiations have included a possible carve out of CapitaLand’s assets in China.
Mapletree has been led by chief executive officer Hiew Yoon Khong for more than two decades. He was formerly the chief financial officer of CapitaLand Group Pte Ltd, the parent company of CapitaLand Investment. As part of a major restructuring in 2021, the investment business was listed to help unlock value, while Temasek took full control of the developer arm.
CapitaLand, led by chief executive officer Lee Chee Koon, has been grappling with a years-long real estate downturn in its major market, China, and a drop in dealmaking across the world.
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