CapitaLand Secures S$131 Million Capital Commitment for India Private Fund
CapitaLand Investment Limited (CLI), a leading global real asset manager, has announced its latest capital commitment from Japanese capital partner, Daibiru Corporation, for its India private fund, CapitaLand India Growth Fund 2 (CIGF2). This new capital commitment amounts to S$131 million, pushing CIGF2’s funds under management (FUM) to over S$1 billion. Daibiru Corporation, a real estate subsidiary of Mitsui O.S.K. Lines, Ltd in Japan, will hold a 25% effective stake in the S$525 million CIGF2. Another prominent Japanese firm, Mitsubishi Estate Co. Ltd, already holds a 50% stake in the fund.
Expanding CapitaLand’s Presence in India
CapitaLand’s collaboration with Daibiru Corporation highlights the company’s growing presence in India. With increasing urbanization, digitalization, and strong government support for investment in the country, India has become a core market for CLI. The partnership will allow CLI to leverage its three-decade-long expertise in India and further contribute to the nation’s growing economy. CLI’s CEO in India, Sanjeev Dasgupta, expressed his excitement about welcoming Daibiru Corporation as a capital partner and emphasized the company’s commitment to generating attractive returns from investments in the country.
Thriving Demand in India’s Business Parks Sector
CLI’s Head of India Private Funds, Hardik Gesota, highlighted the increasing demand from multinational corporations and local companies for quality business parks in India. The rapid growth of the IT/IT-Enabled Services sector and India’s unique strengths as a hub for Global Capability Centres have contributed to this surge in demand. Furthermore, the business parks sector in India is known to be resilient and provides stable, recurring income through long-term leases with industry-leading companies.
New Investment Opportunity: International Tech Park Chennai
As part of Daibiru’s investment in CIGF2, the real estate company will obtain a 25% effective stake in the prestigious International Tech Park Chennai, Radial Road (ITPC-Radial Road). This 2.6 million-square-foot property is located in the business hub of Chennai and caters specifically to the IT/IT-Enabled Services sector. As CIGF2 expands its portfolio, it is expected to include additional business parks in major metro cities like Bangalore, Mumbai, and Pune.
—
In conclusion, CapitaLand Investment Limited has secured a significant capital commitment from Daibiru Corporation for its India private fund, CapitaLand India Growth Fund 2. This collaboration allows CapitaLand to continue its impressive expansion in India’s real estate market and contribute to the country’s economic growth. The business parks sector in India, driven by the thriving IT/IT-Enabled Services industry, offers promising investment opportunities for both domestic and international investors. The addition of the prestigious International Tech Park Chennai to CIGF2’s portfolio further solidifies CapitaLand’s position as a key player in this sector.
