Singapore-based real estate investor CapitaLand (CLI) on Wednesday said it plans to more than double its funds under management (FUM) to nearly Rs 1 tirllion in India by 2028, from S$7.4 billion (more than Rs 45,800 crore) as on June 2024. This will contribute to CLI’s global target of achieving S$200 billion in FUM by 2028.
CapitaLand is looking to launch private funds in logistics and foray into renewable energy and real estate private credit in India. It held an event in Mumbai on Wednesday to celebrate 30 years in the country.
“Renewable energy is a fast-growing segment in India with the government targeting to achieve 500 gigawatts (GW) by 2030, from 111 GW at present. CLI has a captive demand for renewable energy from its tenants across its data centres and business parks,” the investor said in a release.
Singapore-listed CapitaLand India Trust (CLINT) commissioned its first captive solar power plant in Tamil Nadu in January 2024.
“Real estate private credit is gaining institutional investor interest. The debt market in Indian real estate has a potential $170-billion financing opportunity between 2024 and 2026, driven by the increasing demand for residential construction finance. This presents a promising opportunity for CLI to further diversify its portfolio in India,” it said.
CLI said it will adopt multi-pronged strategies to expand its business parks portfolio. “With a current land bank of over 16 million square feet, CLI will accelerate development activities to address the increasing demand for premium office spaces across key metros.”
CLINT will continue to develop and execute forward purchase acquisitions, securing prime assets to ensure a robust pipeline. CLI will continue to raise third-party capital through new private funds, aimed at greenfield developments and value-added strategies, offering strategic investors opportunities to participate in India’s dynamic real estate market, it said.
CLI will seek joint development and joint venture opportunities with capital partners, along with commercial management partnerships, to expand in India. CLI is also focusing on redevelopment and intensification strategies within its existing business parks.
CLI has 14 business and IT parks with 23.5 million square feet of space located in Bangalore, Chennai, Hyderabad, Pune, Mumbai and Gurgaon.
CLI will continue to expand its logistics and industrial portfolio by seeding new private funds for logistics and through CLINT. Its company AFS will expand its footprint through joint development agreements and joint venture partnerships. “ CLI will also seek acquisition opportunities to accelerate growth,” it said. CLI currently has 12 logistics and industrial assets in India under AFS, and three industrial assets and one logistics park under CLINT.
CLI’s lodging business under The Ascott will continue to build on its recurring fee income by expanding through management contracts and franchise contracts. Within India, Ascott will strengthen its presence in metro cities, tier-II markets and leisure destinations.
Lee Chee Koon, group CEO of CLI, said: “Given India’s strategic importance to CLI, we will also actively explore opportunities to enter adjacent business segments, including renewable energy and real estate private credit, to further grow and diversify our income streams.”
“We will leverage our operational expertise to grow the value of our assets, further expand our logistics footprint under our established logistics platform, Ascendas-Firstspace (AFS), and scale up our lodging portfolio through CLI’s lodging arm, The Ascott Limited. CLI remains focused on delivering sustainable returns to our capital partners as we continue to contribute to India’s vibrant economic landscape and the local community,” Sanjeev Dasgupta, CEO of CLI India, said.
