CapitaLand Evaluates Sale of Chennai Facility Leased to Pegatron
CapitaLand is considering the sale of its 750,000 sq ft industrial facility in Chennai, leased to Pegatron, a major Apple supplier. The transaction is expected to be valued around ₹600 crore, reflecting growing investor interest in India’s industrial real estate.
CapitalandPegatronIndustrial Real EstateIphone ManufacturingIndiaReal EstateAug 29, 2025
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.
CapitaLand, a leading global real estate company, has a strong presence in India, with a focus on integrated developments, commercial, and industrial properties. The company’s decision to consider the sale of the Chennai facility reflects its strategic approach to optimizing its portfolio and capitalizing on market opportunities. The potential sale not only highlights the growing importance of India’s electronics manufacturing sector but also underscores the increasing confidence of global investors in the country’s real estate market.
Frequently Asked Questions
What is the expected transaction value of the Chennai facility?
The expected transaction value of CapitaLand's Chennai facility is around ₹600 crore.
Who are the shortlisted bidders for the Chennai facility?
The shortlisted bidders for the Chennai facility include Brookfield, Hines, and Hillhouse Capital.
What is the annual iPhone production capacity of the Chennai facility?
The Chennai facility is reported to manufacture nearly 750,000 iPhones annually, including refurbished units.
What recent development has reshaped the ownership landscape of Pegatron in India?
Tata Electronics recently acquired a 60% controlling stake in Pegatron Technology India, including the iPhone assembly plant in Tamil Nadu.
What are some government initiatives that are expected to further strengthen India’s manufacturing hub status?
Government initiatives 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.
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