Real estate developer CapitaLand earlier announced that it has entered into a deal. Its partner, Ascendas-Singbridge, has agreed to sell two 'wholly owned' units for cash and stock. CNBC commented that this deal results in creating an entity in Asia, one that could end up becoming the biggest diversified real property entity in the region.

CapitaLand has announced that its assets, when combined, is worth 116 billion SGD ($85.79 billion), putting them among the top 10 real estate investment managers with that kind of capital. Ascendas-Singbridge's mother company, Temasek, will be receiving 3 billion SGD ($2.2 billion) in cash and an extra 3 billion SGD in shares from CapitaLand.

This will allow CapitaLand to do more with their assets, including diversifying into new sectors where technology and e-commerce are rampant. They are also looking at other assets in the sectors of industry and logistics, sectors which CapitaLand are familiar with. They already have service apartments, shopping malls, residential units, and offices in their portfolio.

The deal is being monitored closely by different agencies, who see it as a chance for CapitaLand to prove itself. While it is significant, though, there is doubt in their minds as to whether it is really needed or not. Business Times reported that the acquisition of CapitaLand is a big investment, but also an even greater risk for the investment manager.

CapitaLand might have experience in the other areas, but in the sector of logistics as well as industry, they are relatively new players. The company is in strange waters, although it is a good thing to disrupt processes to keep things fresh. CapitaLand can also focus on mastering these areas of investment in case other areas of their company have troubles.

There is also the risk in managing what had become a suddenly-large company. With new asset classes and a global presence to boot, CapitaLand may have exposed themselves perfectly to the world-or they may have bitten off a lot more than they can afford to chew.

The deal, when finalized, will give CapitaLand presence in markets like Europe, India, and the United States. It is also seen to expand the company's presence to about 180 cities spread across 32 countries. Ascendas and Singbridge are companies which included Ascendas Real Estate Investment Trust, Ascendas India Trust, and Ascendas Hospitality Trust.