NEW DELHI: 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. "We see significant opportunities in India's logistics sector. The sector has continued to thrive especially during the pandemic driven by the growing e-commerce and consumerism, generating strong demand for our quality warehouse and distribution facilities.
"We will continue to invest in India's logistics sector through our private funds and our business trust, Ascendas India Trust which currently has seven warehouses located at the Arshiya Free Trade Warehousing Zone in Navi Mumbai," he said.
In total, CapitaLand targets to develop a logistics portfolio of 20 to 25 million sq ft of space in India by 2025, Yap said. CapitaLand has one of the largest real estate investment management businesses globally.
It manages six listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds.