Local property giant, Capitaland is said to be speaking to several agencies as it looks to launch a pitch for a new media agency. Currently the incumbent on the account is OMD.
Marketing understands that the account has been with the agency for the past seven years. Industry players have approximated the account to be worth close to SG$15 million, based on Nielsen’s measures.
Marketing has reached out to CapitaLand for a comment. In an earlier conversation, a CapitaLand spokesperson said “in line with market practice, CapitaLand does review the agencies it works with from time to time.”
“And should there be any review of agencies, a pitch will be called,” the spokesperson then said.
Meanwhile, the Southeast Asian developer is quickly looking to expand further in international markets.
It recently made an announcement that it is entering a 50:50 joint venture with Qatar Investment Authority, Qatar’s sovereign wealth fund, to set up a US$600 million (approximately SG$809 million) serviced residence fund with an initial focus on the Asia Pacific and Europe regions.
It has a target to scale up with six new funds worth up to SG$10 billion by 2020.
This is Ascott’s largest private equity fund to date, said the company. It has a target to launch six new funds with total assets under management (AUM) of up to SG$10 billion by 2020, and this joint venture is part of CapitaLand’s efforts to further grow its fund management business and pursue market opportunities with a stable of blue chip capital partners, said the company.
Lim Ming Yan, president & group CEO of CapitaLand Limited, said: “Real estate is a capital intensive business and fund management is central to the active capital management strategy of CapitaLand as a dominant real estate player. This tie-up with QIA is a good example of how we are proactively working with strong capital partners to build up scale.”
With Ascott’s newly set up global serviced residence fund, CapitaLand now manages 17 real estate private equity funds and five real estate investment trusts (REITs) with AUM worth over SG$43 billion. “This Ascott global serviced residence fund brings us a step closer towards our goal of raising five to six funds with total AUM of S$8-10 billion by 2020.”
Capitaland has also been ramping up its marketing activities, for example, pushing out a major SG50 campaign as well as working with Samsung to launch prototype smart home ideas in Singapore.
Earlier, CDL also called a media pitch as its contract with ZenithOptimedia comes to an end.