CapitaLand Evaluates Sale of Chennai Facility Leased to Apple Supplier Pegatron
Singapore-based CapitaLand is evaluating the sale of its industrial facility in Chennai, which is leased to Pegatron, a major Apple supplier. The transaction value is expected to be around ₹600 crore. The facility, spanning 750,000 sq ft, plays a significant role in iPhone assembly operations in India.
According to the Times of India, CapitaLand has received initial bids for the asset and is considering launching a fresh round of bidding pending board approval. Global investors, including Brookfield, Hines, and Hillhouse Capital, are among the shortlisted bidders. Market participants believe the property’s long-term lease with Pegatron, combined with its position in Apple’s production ecosystem, adds to its strategic value.
The Chennai facility is reported to manufacture nearly 750,000 iPhones annually, including refurbished units. Industry executives describe it as one of India’s largest high-specification industrial facilities dedicated to iPhone production. Earlier this year, Apple arranged special cargo flights to ship nearly 600 tonnes of iPhones, about 1.5 million units, from India to the US, highlighting the growing scale of local production.
The sale consideration comes at a time when India’s electronics manufacturing sector has been gaining momentum. Multinational firms are expanding capacity in response to both global supply chain realignments and government-led production-linked incentive (PLI) schemes. Pegatron’s Indian unit has been central to this trend, with recent developments further reshaping the ownership landscape. Tata Electronics recently acquired a 60% controlling stake in Pegatron Technology India, including the iPhone assembly plant in Tamil Nadu.
If the sale goes through, it would mark another significant transaction in India’s industrial and logistics real estate sector, which has seen strong investor interest. Global institutional investors have been increasingly active in acquiring operational assets with stable tenancy, especially those linked to multinational manufacturers.
Supporting this growth trajectory, a Cushman & Wakefield survey indicated that 88% of manufacturers plan to expand operations in India due to improved infrastructure confidence, while over 95% cited better logistics accessibility as a result of government projects. Large-scale infrastructure programmes such as Bharatmala, Sagarmala, Dedicated Freight Corridors, and the National Industrial Corridor Development initiative are expected to further strengthen India’s attractiveness as a manufacturing hub.
