 "CapitaLand")
CapitaLand Photo: Reuters
Singapore-based real estate conglomerate CapitaLand Investment (CLI) has announced plans to double its investments in the country to over $14.8 billion by 2028.
The announcement was shared by Singapore’s envoy to India, Simon Wong, on the social media platform X, garnering attention and praise for the move.
Singapore’s CapitaLand, one of Asia’s largest diversified real estate groups, plans to more than double its funds under management in India to more than S$14.8 billion (>INR 90,280 Cr) by 2028.Good to see ???????? companies doubling down on investments in ????????! HC Wong https://t.co/2xqROjij7o
— Singapore in India (@SGinIndia) September 4, 2024
CapitaLand, which is celebrating its 30th anniversary of operations in India, is positioning itself to tap into India’s projected growth trajectory. The company’s Group CEO, Lee Chee Koon, highlighted the significance of India as a strategic market.
Speaking to The Edge, Koon said, “India has been one of our fastest-growing markets, where our investments have tripled over the last seven years. With India’s GDP expected to grow by 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.”
He added, “Given our deep expertise in the country and the strong tailwinds, we are confident of more than doubling our current FUM of $7.4 billion in India by 2028. This is also aligned with our priority on geographical diversification to achieve better capital rebalancing.”
Sanjeev Dasgupta, CEO of CLI India, echoed Koon’s sentiments, noting that CapitaLand’s operations in India will be driven through both listed and private investment avenues. “We plan to drive growth through our listed CapitaLand India Trust (CLINT) and private funds. So far, we have established four private funds in logistics and business parks, and we see significant potential in the data centre sector, which is poised for rapid expansion as India’s digital economy grows.”
Expanding footprint: Logistics, IT parks, and data centres
CapitaLand’s footprint in India is already extensive, with 14 business and IT parks spanning across major cities like Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon. These properties cover a total area of 23.5 million square feet, and the company plans to accelerate its development activities to cater to the increasing demand for high-quality office spaces in India’s metropolitan cities.
CapitaLand has also made significant strides in the logistics and industrial sectors since entering the space in 2016. The company currently manages 9.1 million square feet across 12 assets, and its logistics platform, Ascendas-Firstspace (AFS), is set to expand further to accommodate the growing demand.
In the data centre sector, CLI is focused on meeting the needs of enterprise and hyperscale clients. The company is currently developing four state-of-the-art, sustainable data centres in Mumbai, Chennai, Hyderabad, and Bangalore, with a combined power capacity of 244 megawatts. The first of these centres, located in Navi Mumbai and Hyderabad, is expected to begin operations by 2025.
Lodging and renewable energy ventures
CLI’s lodging arm, The Ascott Limited, is another key growth driver for the company in India. Currently, it operates seven properties across six cities, with plans to add eight more, including new openings in Goa and Gurugram in 2024.
Furthermore, CapitaLand is actively exploring opportunities in the renewable energy and private credit sectors in India. The Indian government’s ambitious target of generating 500 gigawatts of renewable energy by 2030 has caught the company’s attention, offering a promising avenue for future growth. Additionally, the burgeoning real estate private credit sector, which is expected to see financing needs of $170 billion between 2024 and 2026, presents lucrative prospects for institutional investors.
CapitaLand’s journey in India
CapitaLand’s journey in India began three decades ago with the development of the International Tech Park Bangalore (ITPB) through Ascendas. In 2015, Ascendas merged with Singbridge to form Ascendas-Singbridge, which then merged with CapitaLand in 2019. After a corporate restructuring, CLI was listed in 2021 as a globally diversified real estate investment firm.
Today, CLI’s broad portfolio in India is set for further expansion as the company capitalises on favourable market conditions and strong economic growth forecasts. By doubling its investments in the subcontinent, CapitaLand is aiming to cement its leadership position in India’s rapidly evolving real estate landscape.
With this move, CapitaLand is not only reinforcing its commitment to the Indian market but also aligning its growth strategy with the country’s economic ambitions, making it a key player in India’s real estate and infrastructure development story.
First Published: Sep 04 2024 | 2:35 PM IST
