New Delhi [India], September 4 : Ahead of Prime Minister Narendra Modi's visit to Singapore on Wednesday evening, CapitaLand Investment Limited (CLI), a global real asset manager, has announced to more than double its funds under management (FUM) in India by 2028, increasing from SD 7.4 billion (Rs 458.8 billion) as of June 30, 2024.
The company announced these growth strategies as it celebrated its 30th anniversary in Mumbai with business partners, investors, and staff.
Lee Chee Koon, Group Chief Executive Officer, CLI said, "India is a strategic market for us and a key contributor to CLI's overall business. India has been one of our fastest-growing markets, where our investments have tripled in the last seven years."
Lee added that investment in India is aligned with the company's priority on geographical diversification to achieve better capital rebalancing
"With India's GDP forecasted to grow 7 per cent in 2024 and its trajectory to be the world's third-largest economy in the next five years, the country is attracting demand from global corporations and institutional investors for quality real assets. Given our deep expertise in the country and the strong tailwinds, we are confident of more than doubling our current FUM of SD7.4 billion in India by 2028," he said.
Sanjeev Dasgupta, Chief Executive Officer, CLI India said, "India presents tremendous potential for CLI. We will drive growth through our listed CapitaLand India Trust (CLINT) and our private funds. We have successfully established four private funds across logistics and business parks, and we see opportunities for data centre funds in India riding on the country's fast-growing digital economy."
CLI entered India 30 years ago with the development of the International Tech Park Bangalore (ITPB) through Ascendas. CLI's presence has since grown to 14 business and IT parks, offering 23.5 million square feet of space across key cities like Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon, serving over 250,000 professionals. CLI plans to accelerate the development of its land bank of over 16 million square feet to meet the rising demand for premium office spaces.
The company also intends to expand its portfolio through joint ventures, private funds for greenfield developments, and strategies for redevelopment and intensification within its existing parks.
In the logistics and industrial sector, CLI entered the market in 2016 and has since grown its portfolio to 9.1 million square feet. CLI plans to expand further by seeding new private funds and leveraging its established logistics platform, Ascendas-Firstspace (AFS).
AFS will focus on Tier 1 markets and seek joint ventures and acquisitions to scale operations efficiently, with CLI currently managing 12 logistics and industrial assets in India.
CLI also ventured into the data center market in India in 2021, driven by rising demand for high-quality data facilities. CLI is developing four state-of-the-art, sustainable data centers in Mumbai, Chennai, Hyderabad, and Bangalore, with a total gross power capacity of 244 megawatts. CLI's first data centers in India is expected to begin operations by 2025.
In the lodging sector, CLI's business under The Ascott Limited (Ascott) operates seven properties across six cities in India and has plans to open eight more properties over the next three to four years.
CLI is also exploring opportunities in renewable energy and real estate private credit in India, with the government targeting 500 gigawatts (GW) of renewable energy by 2030.
CLI has a portfolio of over 40 IT and business parks, industrial, logistics, lodging, and data center assets across eight cities, including Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Kolkata, Mumbai, and Pune.
CapitaLand Investment's portfolio spans the globe, with operations in more than 40 countries and over 260 cities.
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