Singapore based real estate group CapitaLand launched its private fund of INR 2,250 crore to expand the logistics sector in India. The company manages a global portfolio worth SGD 137.7 billion as of March 2021. CapitaLand India Logistics Fund II is likely to invest in logistics assets of six major cities, namely, Ahmedabad, Bengaluru, Mumbai, Chennai, NCR, and Pune, along with emerging markets of Guwahati, Coimbatore, Jaipur, Lucknow, and Kolkata. The new fund will grow CapitaLand’s current total Funds Under Management to SGD 79.2 billion across six listed trusts and over 20 private funds.
The fund follows in the footsteps of CapitaLand’s first successful deployment, a logistics private fund of SGD 400 million Ascendas Inda Logistics Programme, launched in 2018. This fund was used to develop six industrial projects and logistics in Bengaluru, NCR, Chennai, and Pune. The six projects provide a development potential of over 12 million sq ft space. Two projects are already operational, with 2.8 million sq ft leased space.
Commenting on the launch of the second logistics fund, Jonathan Yap, President, CapitaLand Financial, CapitaLand Group, said, “Launch of the second logistics fund is in coherence with the CapitaLand Group’s strategy to expand the fund management business. This will help generate Fee Related Earnings (FRE), and grow the assets of the company efficiently.”
“Our target is to grow the group’s FUM to SGD 100 billion by 2024, with the help of new funds across varied geographies and asset classes, along with growing our existing REITs, private funds, and business trusts. We will continue to grow our funds in core markets of Singapore, India, Vietnam, and China, as well as focus on other markets like Australia, Europe and the United States, which have strong investor demand,” he added.
He further stated, “We see significant opportunities in India’s logistics sector. Especially during the pandemic, growing e-commerce and consumerism has helped the sector thrive, generating strong demand for distribution and warehousing facilities. In total, our target is to establish 20 to 25 million sq ft space in India by 2025. The second logistics fund will help expand our presence in the country and deliver quality facilities while generating attractive returns.”
CapitaLand Group has a significant presence in India, with a portfolio of 20 businesses, IT parks, lodging, logistics, and industrial properties, and data centres across seven cities of Bengaluru, Goa, Chennai, Gurgaon, Mumbai, Hyderabad, and Pune. The group is a key contributor to India’s IT sector and has adopted measures to reduce its carbon footprint with 29 green building properties in India.