Mumbai, 4 September 2024 – CapitaLand Investment Limited (CLI) has announced a strategic plan to more than double its investments in India by 2028. The company aims to increase its funds under management (FUM) in India from S$7.4 billion (INR 458.8 billion) as of June 2024 to over S$15 billion, contributing to CLI’s global target of S$200 billion in FUM by 2028.
The announcement was made during CLI’s 30th anniversary celebration in Mumbai, where the company outlined its growth strategies and commitment to the Indian market. India is recognized as a key strategic market for CLI, reflecting its rapid growth and evolving economic landscape.
Strategic Expansion and Diversification
CLI’s expansion plans in India will leverage its expertise across various asset classes, including business parks, logistics, data centers, and lodging. The company will focus on several key areas:
- Business Parks: CLI will enhance its presence in India’s business parks sector, with a current land bank of over 16 million square feet. The company plans to accelerate development activities to meet rising demand for premium office spaces in major metropolitan areas. CLI’s listed CapitaLand India Trust (CLINT) will continue to acquire prime assets, supporting sustained growth in this sector.
- Logistics and Industrial Portfolio: Since entering the logistics market in 2016, CLI has grown its portfolio to 9.1 million square feet. The company aims to expand this segment through new private funds and joint ventures. Ascendas-Firstspace (AFS), CLI’s logistics platform, will drive growth in Tier 1 markets, focusing on high-quality logistics and industrial infrastructure.
- Data Centers: CLI’s data center strategy includes developing four new state-of-the-art facilities across Mumbai, Chennai, Hyderabad, and Bangalore, with a total gross power capacity of 244 megawatts. The company’s first data centers in India are expected to begin operations in 2025.
- Lodging Portfolio: Under The Ascott Limited, CLI will expand its lodging portfolio in metro cities, Tier 2 markets, and leisure destinations. Ascott plans to add eight new properties in India over the next few years, building on its existing seven properties across six cities.
Exploring New Opportunities
CLI is also exploring opportunities in renewable energy and real estate private credit. The company is investing in renewable energy to support its data centers and business parks, aiming to increase green energy usage and reduce carbon emissions. Additionally, CLI is considering entry into the real estate private credit market, which presents significant growth potential given the US$170 billion financing opportunity projected for the Indian real estate sector between 2024 and 2026.
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Conclusion
CapitaLand Investment’s plans to significantly increase its investments in India reflect the country’s strategic importance and the company’s commitment to contributing to India’s economic growth. With a diverse portfolio and a focus on sustainable and strategic expansion, CLI is set to play a major role in India’s real estate and infrastructure development over the coming years.
