by THO
Global real estate asset manager CapitaLand Investment Limited (CLI) on November 6 announced that it has secured a S$131 million capital commitment from new Japanese capital partner, Daibiru Corporation, for its India private fund – CapitaLand India Growth Fund 2 (CIGF2).
The capital commitment will increase CIGF2’s funds under management (FUM) to more than S$1 billion, the company statement said.
Daibiru Corporation is a real estate subsidiary of shipping major Mitsui O S K Lines, Ltd in Japan.
According to the company statement, Daibiru Corporation will hold a 25% effective stake in the S$525 million CIGF2, which invests in Grade A business parks in prime locations across gateway cities in India. Interestingly, another Japanese firm – Mitsubishi Estate Co Ltd – holds a 50% stake in CIGF2.
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“CLI continues to maintain a sponsor stake in the fund as part of its asset-light growth strategy while keeping alignment with the interests of its capital partners,” the statement noted.
“India is a core market for CLI where we have seen enormous growth driven by its increasing urbanisation, digitalisation and strong government support for investment…Leveraging CLI’s 30 years of expertise in India, we have been able to generate attractive returns from our investments in the country, and we remain focused on creating sustainable value for our partners,” said Sanjeev Dasgupta, CEO, CLI India.
Daibiru’s investment in CIGF2 will see the real estate company take a 25% effective stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road), the company statement highlighted. Located in the business hub of Chennai, the 2.6 million-square feet ITPC-Radial Road caters to the IT / IT-enabled services sector.
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Over time, CIGF2’s portfolio is also expected to include business parks in major metro cities such as Bengaluru, Mumbai and Pune, the statement added.
Hardik Gesota, Head, India Private Funds, CLI, said: “There is increasing demand from multinational corporations and local companies for quality business parks in India due to the rapid growth of the IT / IT-enabled services sector and India’s unique strengths as a hub for Global Capability Centres. The business parks sector is also one of the most resilient asset classes in India as it provides a stable, recurring income through long-term leases with industry-leading companies.”
More on CapitaLand Investment in India
According to the company statement, over a span of 30 years, CLI has diversified its portfolio in India to include over 40 IT and business parks, industrial, logistics, lodging and data centre assets. CLI’s portfolio presently spans across eight cities in the country – Bengaluru, Chennai, Goa, Gurugram, Hyderabad, Kolkata, Mumbai and Pune.
CLI has set a target to more than double its current FUM of ₹458.8 billion (S$7.4 billion) in India by 2028, the company statement highlighted.
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CIGF2 is CLI’s second business park development fund in India since the S$300 million Ascendas India Growth Programme, which was closed and fully committed in 2015. Additionally, CLI has closed two logistics private funds in India, the Ascendas India Logistics Programme and CapitaLand Logistics Fund II, with a fund size of S$400 million each.
