CapitaLand Aims to Double Funds Under Management to Rs 1 Trillion by 2028
CapitaLand plans to launch private funds in logistics, foray into renewable energy and real estate private credit in India, and expand its business parks portfolio.
CapitalandReal EstateIndiaLogisticsRenewable EnergyReal Estate MumbaiSep 04, 2024
CLI is looking to launch private funds in logistics and foray into renewable energy and real estate private credit in India. The company 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.
Real estate private credit is gaining institutional investor interest, with the debt market in Indian real estate having 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.
CLI 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.
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'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.
Information CapitaLand is a Singapore-based real estate investor with a presence in India for over 30 years. The company has a diversified portfolio of business parks, logistics, and industrial assets, as well as a lodging business under The Ascott.
CapitaLand Limited (CLI) is a Singapore-based real estate investment manager with a global presence. The company has a portfolio of business parks, logistics, and industrial assets, as well as a lodging business under The Ascott.
Frequently Asked Questions
What is CapitaLand's plan for India?
CapitaLand plans to more than double its funds under management in India to nearly Rs 1 trillion by 2028.
What new business segments is CapitaLand looking to enter in India?
CapitaLand is looking to enter renewable energy and real estate private credit in India.
How many business and IT parks does CapitaLand have in India?
CapitaLand has 14 business and IT parks with 23.5 million square feet of space located in Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon.
What is the potential financing opportunity in the Indian real estate debt market?
The debt market in Indian real estate has a potential $170-billion financing opportunity between 2024 and 2026.
What is CapitaLand's strategy for expanding its logistics portfolio in India?
CapitaLand will continue to expand its logistics and industrial portfolio by seeding new private funds for logistics and through CLINT.
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