CLI claims to have $125 billion in “funds under management” (FUM) as at end-2025, while Mapletree Investments manages $80.3 billion of assets as at March 2025. The former aims to achieve $200 billion FUM by 2028, while the latter aims to reach between $100 billion and $120 billion in AUM by March 31, 2029.
There are economies of scale in a CapitaLand-Mapletree merger, says Lim, who co-founded Suntec REIT. “The asset classes are very similar, the management style is also very similar — all Temasek policies and all that. When you put them together, you form a much stronger, bigger entity that you can go and compete with the world.”
The biggest challenge, however, is people. Lim speaks from experience, after ESR Group acquired ARA in 2022 to become one of the world’s largest real estate investment managers. “The concept actually makes sense, but it’s [about] the people — who’s going to run it, who’s going to chair, who’s going to [sit on the] board? I think that’s very complex [with] a lot of politics.”
Both CLI and Mapletree Investments have “powerful CEOs”, adds Lim, referring to CLI’s Lee Chee Koon and Mapletree’s Hiew Yoon Khong. “Who’s going to take over? Who’s going to be chairman?”
See also: Chinese hospitality is the ‘best asset class’ in real estate right now: John Lim
‘Allow local REITs to expand’
Size matters, and the Singapore Exchange (SGX) should focus on helping existing S-REITs grow instead of courting more new listings, says Lim, chairman of JL Family Office and Aprea. “Allow our local REITs to expand. What’s the point of another [S-REIT]?”
Lim hopes the regulators can introduce policies that encourage “big” S-REITs like Suntec REIT and CapitaLand Ascendas REIT to acquire foreign assets. “Now is a good time; [foreign assets are] cheap, right? These are big REITs with already $10, $20 billion [AUM], another $2, $3 billion is nothing, right?”
See also: CapitaLand downplays Mapletree merger rumours; preps second C-REIT IPO and data centre platform
With choice acquisitions, the 39 S-REITs can “easily” bring its collective market capitalisation from US$82.1 billion (as at February) to US$120 billion, adds Lim. “People always think I must do more launches or IPO. I say, ‘Why? The Singapore market is so small; there are no more new assets.’”
Launching S-REITs with “$500 million or $700 million” portfolios is a “waste of time”, says Lim. “To me, a sizeable REIT needs at least a $10 billion asset base… All those [S-REITs with] $1 billion asset bases are wasting time; you cannot grow.”
The SGX is host to a number of “orphan REITs”, as Lim puts it. “They are listed [but have] no liquidity and they do nothing. Merge all these REITs into bigger REITs, then set up policies and guidelines to allow the local REITs to go out and acquire more assets. That’s how we grow our Singapore [market], but it seems like nobody is doing it. But never mind, I have retired already.”
See also:
CapitaLand downplays Mapletree merger rumours; preps second C-REIT IPO and data centre platform
Mapletree Investments’ Silver Jubilee: Growing with each cycle
Chinese hospitality is the ‘best asset class’ in real estate right now: John Lim
