As part of the strategy, CapitaLand wants to use the stake and eventual takeover to drive business growth in Japan's real estate investment trust sector, among others.

Singapore-headquartered real asset manager, CapitaLand Investment, is investing S$524 million ($400 million) in SC Capital Partners Group, a property investment firm in Asia. CLI's initial stake in the firm is for S$280 million. 

The deal is expected to close in the first quarter of 2025, subject to regulatory approvals.

“Our strategic partnership with CLI will enable SC Capital Partners to gain access to additional resources, enabling us to accelerate capital deployment and achieve scale, which is becoming increasingly important,” Suchad Chiaranussati, chairman and founder of SC Capital Partners, said.

CLI will be granted conditional options to acquire two additional 30 per cent stakes in SC Capital Partners on both the third and fifth anniversary from transaction closing, with a path to full ownership by 2030, it said.

In the intervening period, Chiaranussati will retain “full autonomy” over the business, including investment activities and launching investment products, it added.

As a result of the deal, SC Capital Partners will obtain a rise of S$11 billion of AuM. CLI will also deepen its presence in Japan and expand into the country’s market for real estate investment trusts.