CapitaLand to Raise 525 Million Singaporean Dollars for Business Park Projects Across India

Bangalore: 

CapitaLand Investment Limited (CLI) intends to raise SGD 525 million for its second fund devoted to Class-A business campuses in Indian gateway cities.

In the initial conclusion of the fund - CapitaLand India Growth Fund 2 (CIGF2) - CLI secured S$263 million in exchange for a 50% stake from a global institution.

In accordance with its asset-light strategy to expand funds under management, CLI intends to retain a 20% sponsor stake in order to ensure strong investor and partner alignment.

The total equity commitment for the first financing is S$368 million, which is anticipated to increase CLI's funds under management by approximately S$700 million.

As a global real estate investment manager with nearly 30 years of experience in India, we are able to leverage our extensive local knowledge to provide investors with high-quality assets that generate attractive returns, according to Simon Treacy, CLI's chief executive officer of private equity real estate.

As its primary asset, CIGF2 has acquired from CLI a 70% equity stake in Inter national Tech Park Chennai, Radial Road (ITPC-Radial Road) for S$95 million (590 crore). CLI will continue to oversee the ITPC-Radial Road asset following its sale.

The 2.6 million-square-foot ITPC-Radial Road in the business centre of Chennai serves the IT and IT-enabled services sector.

Phase 1 is expected to be completed by the end of the third quarter in 2023.

India is a key market for CLI, where our business parks enjoy high occupancy due to demand from multinational corporations and local companies in the IT/IIT-enabled services industry, according to Sanjeev Das-gupta, CEO of CLI India. 

CIGF2 is CLI's second business park development fund in India since the S$300 million Ascendas India Growth Programme ended in 2015 and was completely committed.

CLI also has two logistics private funds in India, each with a S$400 million fund size: the Ascendas India Logistics Programme and the CapitaLand Logistics Fund II.