CapitaLand ramps up its India presence, targeting key sectors with plans to expand from 22M to 50M square feet of commercial and industrial space.
Singapore-based company CLI has recently announced its plan to invest $1 billion in India in the next three years. The investment will focus on enhancing its coverage in all sectors, types of businesses and industries, such as business parks, logistics industrial parks and so on, to leverage the growing Indian economy and demand for quality real estate infrastructure.
The management of CLI has identified India as a significant market for this company because of increased FDI, favorable demography and government policies like Make in India. Capitaland is set to increase its funds under management by $700 million with the introduction of a fund for business park development in India last month. It is also planning expansion of the real estate portfolio in India in which it plans to reach up to 50 million square feet by 2027. Currently, the company controls 7.5 million square feet of industrial parks and roughly 22 million square feet of business parks across the nation. The key investment areas will be commercial real estate, logistics, and industrial as these segments demonstrate high demand due to such factors as India’s progression to urbanization, growing e-commerce demand, and general changes to supply chain resilience.
CapitalLand also plans to raise approximately $250 million for investments in India’s rapidly growing data centre sector. This step is also a crucial part of CLI’s vision to double its funds under management (FUM) in India in the next 4 years.
With an asset under management (AUM) of S$ 4 billion, it owns and manages more than 20 commercial and IT parks, industrial, lodging, and logistics facilities across Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai, and Pune in India which makes it one of the largest foreign investors in the Indian real estate sector. In addition, the AUM and FUM of CapitaLand Group’s real estate fund business stood at S$ 133 billion and S$ 89 billion, respectively, by 31 March 2023. This involves the acquisition of six real estate investment trusts (REITs) and business trusts and more than thirty private ones.
This investment from CapitaLand is a powerful statement that India remains the growth driver in the real estate and technology market and is important as the company plans to achieve investments worth over US $1 billion in the next three to four years. CapitaLand will continue gauging the industry leader spot in the Indian market going forward through aggressive diversification into more demand drivers such as business parks, logistics and industrial parks; which would assist India within its urban and economic development.
