CLI aims to double its funds under management (FUM) to S$200 billion by 2028, with a target of increasing operating earnings more than twofold to over S$1 billion by 2028-2030. The company plans to achieve this growth through its four Fee Income-related Businesses (FRBs), including the expansion of its REITs platform, private funds, lodging, and commercial management. A mix of organic growth, new listings, and mergers and acquisitions (M&A) will drive this expansion.

A key component of CLI’s strategy involves M&A, with significant capital allocated for new growth engines. On 20 November 2024, CLI announced a S$280 million (US$214 million) investment to acquire a 40% stake in SC Capital Partners Group (SCCP), marking its first foray into Japan’s REIT market. This move will increase CLI’s FUM by S$11 billion, enhancing its presence in Japan and broadening its geographical footprint.

CLI’s Group CEO, Mr. Lee Chee Koon, emphasized that the company’s foundation in Asia Pacific would be complemented by further diversification into key international markets, including Japan, Korea, Australia, the US, and Europe. He also highlighted CLI’s ongoing focus on capital efficiency, with over S$24 billion recycled since 2021, channeling significant investments into private and public funds.

The company’s growth strategy is underpinned by three major investment themes: demographics, disruption, and digitalization, with a focus on sectors such as health, logistics, data centers, and renewables.

Also Read: APAC Investor Optimism to Drive Institutional Investments in Indian Real Estate in 2025

The post CapitaLand Investment Plans Global Expansion and M&A Strategy for Growth appeared first on Square Feat India.

By Varun Singh

Despite a decline in leasing activity, the weighted average transacted office rentals grew by 2.2% YoY in H1 2020.

Yes this did happen, when a major part of the H1 2020 has been under a lockdown due the Coronavirus pandemic.

According to a report by Knight Frank India, new office completions in Mumbai saw a significant rise of 90% YoY growth to 3.64 mnsq ft in H1 2020. While the office leasing transaction volumes saw a decline of 17% YoY to 3.85 mnsq ft in the same time.

Despite a decline in leasing activity, the weighted average transacted rentals grew by 2.2% YoY in H1 2020 as the share of BKC and off-BKC with (2% YoY), and Central Mumbai (3% YoY) was high.

The average deal size in Mumbai reported a significant increase of 44.4% YoY to INR 3,892 /sq m (INR 41,987 sq ft) in H1 2020 from INR 2,700 /sq m (INR 29,059 sq ft) in H1 2019.

Despite the reduction in the number of deals from 160 in H1 2019 to 91 in H1 2020, the average deal size increase was primarily owing to larger deals transacted in BFSI and IT sectors.

The large leasing deals by an IT company and a BFSI company adding to 1.8 mnsq ft (0.18 mn sq m) in H1 2020 helped avert a more significant decline in leasing volumes.

Leasing activity is likely to stay under pressure in the coming months given the economic impact of lockdown.

Many occupiers would look to postpone their leasing decisions till things stabilize, some may be forced to give up existing spaces due to business slowdown.

BFSI had the highest share of transactions in H1 2020 at 41%, followed by Information Technology (IT) at 35%.

The share of the IT sector spiked up in H1 2020 due to a large deal by a leading IT company. However, the share of co-working sector in new leasing declined from 7% in H1 2019 to 3% in H1 2020.

In terms of location, Central Mumbai saw an exponential growth of 353% YoY to 0.67 mnsq ft transactions in H1 2020 followed by CBD & off CBD with 40% to 0.09 mnsq ft and PBD with 8% to 1.57 mnsq ft. 

The report mentions that due to economic slowdown, there is downward pressure on rentals which would reflect in transactions taking place in the second half of 2020. Rentals are likely to correct in certain business districts.

Rajani Sinha, Chief Economist and National Director, Research, Knight Frank India said, “The nationwide lockdown has brought the hitherto healthy momentum in office market of MMR to a halt. Businesses have become conscious of the impact of the lockdown and have therefore put their expansion plans on hold leading to lower leasing activity specially in Q2 2020.”

She further added, “Co-working spaces, that had been observing phenomenal rise till end of 2019, were quick to go into a wait and watch mode, as the vacancy in co-working spaces increased as a direct result of the lockdown.

Also Read: 5-million retail jobs at stake if malls don’t open soon

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By Varun Singh

To know the truth how home sales will behave post the lockdown era, there can be no better source than realtors.

There are speculations that sale of homes may reduce, but realtors who are alway on field and in touch with both builders and home buyers claim sales will grow.

Realtors are the actual field warriors of real estate industry, they are the one who drive the actual sale in most of the cases.

Builders call them channel partners, because they are the channel via which, the builder receives his home buyer.

Post the lockdown is lifted, the role of these channel partners will increase, they will be the one on whom the builders will entrust the work to get home buyers.

Realtors believe that the residential market will see a growth, because people have realized the worth of a good home.

Yashika Rohira of Karma Realtors, who deals into properties in western suburbs from Bandra, Andheri and other areas, says, “There’s no doubt that one would see a growth in the forthcoming times for making purchases, however the economical situation and steadiness of income of the people would matter.”

According to her the role of the broker would rather increase in real estate transactions post the lockdown is lifted. “Brochures and websites can render images, but not provide a feel and an unbiased perspective. Real estate is still very personal to the buyers, specially residential,” she said.

The realtors even have an advise for builders, “It appears that this market would see transaction and cash flow, but no price growth, I believe it is a good time for securing cash flow and reducing debt for builders and investors, and not chase notional returns.”

Rajiv N Jain of Ruchika Shelters who deals in properties in South Mumbai says, “The Residential sector should do well now, due to lockdown maximum people have realized the need for a bigger house and upgradation.”

With the pandemic not showing signs to leave any time soon, brokers will also have to change their ways. Digital is the way ahead.

Jain says, “Every realtor needs to reform in a way one operates his business. One needs to go more digital and understand the consumer behavior and psychology post COVID-19. Realtors need to exhibit maximum transparency and share transaction data with his client as part of his effective presentation to give him a maximum worth of his hard earned money.

Rahul Phondge, CBO – Residential Services, ANAROCK Property Consultants, says, “Real estate is fundamentally a people business based on relationship-building – but as the proliferation of social media channels proves, there is more than one way for interactions to take place.”

Phondge adds, “Even as lockdowns are gradually being lifted to aid economic recovery, both property sellers and buyers will remain wary of doing things the old way. Real estate broking firms across the globe now rely heavily on technology to continue doing business to the backdrop of a major pandemic with no clear end in sight.”

Meanwhile, realtors are confident that their importance will grow along with growth in home sales.

Rohira said, “The Industry has trusted brokers since decades as they have always proved their worth every time a challenge has been faced by the industry. I believe a brokers importance would grow in such times. I don’t see anyones brokerage being put to question.”

Safety Measures (source Anarock)

The rulebook of post-coronavirus real estate brokerage is still being written. However, it is certain that concerns about safety will continue even after lockdowns, and site visits can obviously not be dispensed with altogether. Some of the emerging new post-lockdown best practices for mutual safety of buyers and sellers include:

• Site visits must involve adequate social distancing, use of protective gear and a strictly limited number of attendees
• Transportation to and from sites must involve separate vehicles for agents and buyers, with the latter preferably using their own vehicles
• Every aspect of the business not requiring in-person attendance must be digitized
• All brokerage staffers as well as developer’s sales team members to be screened regularly
• All office spaces and vehicles to be sanitized regularly

Also Read: Migrant workers to get affordable rental housing

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