Real estate-focused asset manager Vestas Asset Management announced on the 7th that it has formed a strategic partnership with Singapore-based global real estate investment company CDL.

CDL will become a shareholder of Vestas Asset Management through a third-party paid-in capital increase. A third-party paid-in capital increase is a method of financing in which new shares are issued to specific investors.

Through this collaboration, the two companies plan to cultivate the hospitality sector, including domestic hotel investments, as a new growth pillar. The plan is to create synergies by combining CDL’s hospitality business capabilities with Vestas Asset Management’s domestic investor network.

Vestas Asset Management recently established a new business unit focused on hospitality and has been recruiting key personnel. Starting with the hotel sector, this business unit plans to review various investment structures.

Founded in 1963, CDL is a Singapore-listed real estate investment company with a market capitalization of approximately KRW 7.5 trillion. As of last year, its assets were reported at around KRW 35 trillion and revenue at about KRW 3.6 trillion. Its business areas include residential and commercial real estate and hotels, and its hotel subsidiary Millennium & Copthorne owns and operates approximately 160 hotels worldwide. It also has experience in Korean hotel investments. CDL acquired the Namsan Hilton Hotel in 1999 and sold it in 2021, and in 2023 it acquired the Nine Tree Premier Hotel Myeongdong II.

CDL and Vestas Asset Management also plan to strengthen cooperation in global business. In the course of reshaping CDL’s European portfolio, it plans to work with Vestas Asset Management’s local subsidiary.

Meanwhile, Vestas Asset Management is a real estate-focused asset management company established in 2010. It structures and manages real estate funds composed of various asset types, including offices, retail, logistics, and hotels. As of the end of December last year, its total assets under management (AUM) were reported at around KRW 8.7 trillion. Since its first investment in a UK Amazon logistics center in 2016, it has managed 24 logistics assets across 10 European countries.

Recently, in collaboration with domestic policy finance institutions and logistics companies including Korea Overseas Infrastructure & Urban Development Corporation (KIND), LX Pantos, PIS No. 2 Fund, and Korea Ocean Business Corporation, it invested in a newly built logistics center in the Katowice region of Poland.

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