CapitaLand Investment Aims to Double Funds in India by 2028, Eyes Renewable Energy and Private Credit
Singapore-based CapitaLand Investment Ltd plans to more than double its funds under management in India by 2028, with a focus on real estate, renewable energy, and private credit.
Capitaland InvestmentReal EstateRenewable EnergyPrivate CreditIndiaReal EstateSep 04, 2024
Besides scaling up investments in business parks, data centres, and logistics, the fund manager plans to make forays into private credit for real estate and investments into renewable energy projects.
Andrew Lim, group chief operating officer, CapitaLand Investment – a real estate asset fund manager — said the proportion that India comprised of the overall business was about 3.5 per cent in 2019 and today the proportion is just north of seven per cent of SGD 100 billion FUM. CLI plans to double the FUM by 2028 (SGD 200 billion), which implies that growth trajectory for India should outpace the trajectory for any other market, he said in a presentation to media on India business plans.
At present, business parks have 90 per cent share in FUM in India and the balance 10 per cent is industrial. The share of different lines would go under change in growing FUM. Business parks would have 60-65 per cent share by 2028, said Sanjeev Dasgupta, chief executive officer, CLI India.
The business growth in the country will be through listed CapitaLand India Trust (CLINT) and private funds. The fund manager has set up four private funds across logistics and business parks. There are opportunities for data centre funds in India, riding on the country’s fast-growing digital economy, he added.
On new business lines, Dasgupta said CLI will explore opportunities to enter adjacent business segments such as renewable energy and real estate private credit. Potentially for the renewable energy business, CLI could look at an infrastructure trust for a portfolio of operating projects.
CLI has a captive demand for renewable energy from its tenants across its data centres and business parks. Thus, the focus is more on supplying power to corporate and institutional clients and not so much on the utility side, Sengupta said. CLINT commissioned its first captive solar power plant in Tamil Nadu in January 2024.
As for entering into private credit business for real estate, he said CLI has become interested in it as bankruptcy laws in India have matured. “We are seeing a lot of instances where people have been able to enforce a reasonable period of time in case of defaults,” Sengupta said.
Also, the Reserve Bank of India has made it very difficult for banks to lend for land acquisition and pre-approval projects. This opens up an interesting opportunity to get good returns for real estate credit strategy, Sengupta added.
About CapitaLand Investment Ltd
CapitaLand Investment Ltd (CLI) is a Singapore-based real estate asset fund manager with a global presence. The company has a diverse portfolio of properties across Asia, Europe, and the Americas.
Information
The Indian real estate market has seen significant growth in recent years, driven by government initiatives and increasing demand for housing and commercial space. The market is expected to continue growing, with the Indian government targeting USD 1 trillion in investments in infrastructure by 2025.
CapitaLand Investment Ltd (CLI) is a leading real estate asset fund manager with a global presence. The company has a diverse portfolio of properties across Asia, Europe, and the Americas, and is committed to delivering sustainable and long-term value to its stakeholders.
Frequently Asked Questions
What is CapitaLand Investment's plan for India?
CapitaLand Investment plans to more than double its funds under management in India by 2028, with a focus on real estate, renewable energy, and private credit.
What is the current share of business parks in CapitaLand Investment's FUM in India?
Business parks currently have a 90% share in FUM in India.
What is CapitaLand Investment's strategy for renewable energy in India?
CapitaLand Investment plans to explore opportunities to enter adjacent business segments such as renewable energy, with a focus on supplying power to corporate and institutional clients.
Why is CapitaLand Investment interested in private credit business for real estate in India?
CapitaLand Investment is interested in private credit business for real estate in India due to the maturity of bankruptcy laws and the difficulty for banks to lend for land acquisition and pre-approval projects.
What is the target for investments in infrastructure in India by 2025?
The Indian government is targeting USD 1 trillion in investments in infrastructure by 2025.
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