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This Real Estate Company Seems To Be A Mini CapitaLand Limited – Will It Become A Bona Fide Giant?

Real estate giant CapitaLand Limited (SGX: C31) is more than just a property developer – it actually has wide business interests across the property industry.

The company is able to develop whole townships with the development of residential, commercial, and retail properties. CapitaLand is also one of the largest property owners in the region.

Through its investments, management, and sponsorships of REITs like CapitaMall Trust (SGX: C38U)CapitaRetail China Trust (SGX: AU8U)CapitaCommercial Trust (SGX: C61U), and Ascott Residence Trust (SGX: A68U), CapitaLand manages varies type of properties ranging from shopping malls, to commercial offices, to hotels. This portfolio of REITs also make CapitaLand a sizeable player in the real estate fund management space.

With these, it seems that CapitaLand is the ultimate property company, a firm that manages to touch different aspects of our lives ranging from the homes we stay in to the malls we shop in; from the offices we work in to the hotels we party in.

This strategy of having wide-ranging interests in the property industry has helped to propel CapitaLand to become the S$15.4 billion company we know of today.

If this strategy has benefited CapitaLand so well, would it make sense for us to look at other property plays which might be taking a leaf out from CapitaLand’s playbook?

Turns out, there is indeed a company in Singapore that might be trying to become the next CapitaLand. That company is Frasers Centrepoint Ltd (SGX: TQ5). After being spun-off by Fraser and Neave Limited (SGX: F99) last year, Frasers Centrepoint has since embarked on a journey to mold itself into a property juggernaut.

When it was spun off, Frasers Centrepoint started out as a regional but still predominately Singapore-based developer. It was also the sponsor and manager of two REITs, Frasers Centrepoint Trust (SGX: J69U) and Frasers Commercial Trust (SGX: ND8U).

Since then, the firm has created a new trust for its hospitality assets, namely Frasers Hospitality Trust (SGX: ACV).

In addition, Frasers Centrepoint has also added significant Australian exposure to its business activities with the acquisition of Australand Property Group, a major property developer and asset owner in Australia. In an interesting twist of fate, Australand Property Group was once partially owned by CapitaLand prior to 2014.

So after the hospitality-asset spin-off and the Australian acquisition, Frasers Centrepoint is now more than just a property development company. It is a truly regional developer, a real estate fund management outfit, and an asset owner of shopping malls, commercial buildings, and hotels. Sound familiar?

Currently, Frasers Centrepoint has a market capitalisation of S$5.2 billion, only one-third that of CapitaLand. Will it one day be as large as CapitaLand? Only time will tell.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim owns Frasers Centrepoint Ltd.