CapitaLand Investment, a Singapore-based real estate investment manager, is raising a new fund to develop business parks in India.
The fund, called CapitaLand India Growth Fund 2, has a target size of SGD 525 million (USD 390 million). The company has already secured SGD 263 million in funding from a global institution for a 50 per cent stake in the fund’s first closing. CapitaLand will maintain a 20 per cent stake in the fund as the sponsor.
The fund will invest in Grade A business parks in prime locations across gateway cities in India. It has bought a 70 per cent stake in International Tech Park Chennai from CapitaLand for SGD 95 million (Rs 590 crore) as its seed asset.
CapitaLand said that India is a core market for it and that its business parks in the country enjoy high occupancy. The company also said that it sees opportunities to invest in new economy assets such as data centres, logistics and industrial properties in India through its private funds.
The new investment vehicle follows the SGD 300-million Ascendas India Growth Programme, which had set out to raise about SGD 600 million and had onboarded Singapore’s sovereign wealth fund GIC as a principal investor.
Last year, CapitaLand was looking to raise a Rs 2,000-2,500-crore India-focused fund to invest in office projects. Apart from office space-focused funds, CapitaLand also manages two logistics-focused funds in India, the Ascendas India Logistics Programme and CapitaLand Logistics Fund II, with a fund size of SGD 400 (about USD 297 million) million each.
Currently, CapitaLand has assets valued at about SGD 4 billion in India, with 20 IT and business parks, industrial, logistics, lodging and data centre assets across seven cities – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai and Pune.
Categories: Specialized Funds