CapitaLand unveils `2,250-cr fund to develop logistics parks in India

Singapore-based diversified real estate group CapitaLand on Wednesday announced a fund worth Rs 2,250 crore to develop logistics parks in India.

CapitaLand is one of Asia's largest diversified real estate groups. Headquartered and listed in Singapore, it owns and manages a global portfolio worth about Singapore dollar (SGD) 137.7 billion as at March 31, 2021. "CapitaLand has launched its second logistics private fund of SGD 400 million (Rs 22.5 billion) to expand in India's logistics sector, one of the largest globally," a company statement said.

CapitaLand India Logistics Fund II will invest in the development of logistics assets in key warehousing and manufacturing hubs in six major cities - Ahmedabad, Bangalore, Chennai, Mumbai, National Capital Region (NCR), and Pune, as well as in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.

The new fund will grow CapitaLand's current total funds under management (FUM) of SGD 79.2 billion across over 20 private funds and six listed trusts. CapitaLand India Logistics Fund II follows the successful deployment of CapitaLand's first logistics private fund, the SGD 400 million Ascendas India Logistics Programme launched in 2018, to develop six logistics and industrial projects in Bangalore, Chennai, NCR, and Pune.

The six projects have a total development potential of over 12 million sq ft of space. Two of the projects are operational with 2.8 million sq ft of space that has been leased. Jonathan Yap, President, CapitaLand Financial, CapitaLand Group, said: "The launch of CapitaLand's second logistics fund in India is in line with the group's strategy to expand our fund management business to generate recurring fee related earnings (FRE) and grow the group's assets under management (AUM) in a capital efficient way." "Our target is to grow CapitaLand's FUM to at least SGD 100 billion by 2024. We will do so by raising new funds across geographies and asset classes, as well as supporting the growth of our existing REITs, business trusts and private funds," he added.

Yap said the expansion in new economy asset classes such as logistics will further diversify and strengthen the resilience of CapitaLand's portfolio.