CapitaLand invests $300Mn to develop logistics parks in India

CapitaLand, a Singapore-based diversified real estate company, has reportedly announced a $300 million (Rs 2,250 crore) fund to set up logistics parks in India. If sources are to be believed, the CapitaLand India Logistics Fund II would invest in significant warehouse and manufacturing centers in six major cities, namely National Capital Region (NCR), Ahmedabad, Chennai, Bangalore, Mumbai, and Pune, as well as in developing markets like Jaipur, Coimbatore, Guwahati, Lucknow, and Kolkata.

According to a press release, the company said that it has formed its second logistics private fund worth SGD 400 million (Rs 22.5 billion) to enlarge India's logistics sector.

For the uninitiated, CapitaLand is one of Asia's most diverse real estate conglomerates. It has headquarters and stock exchange listing in Singapore, and owns and manages a global portfolio worth about SGD 137.7 billion. The new investment brings the company’s total funds to SGD 79.2 billion in funds under management (FUM) that is spread across over 20 private funds and six listed trusts.

Reportedly, CapitaLand's first logistics private fund was Ascendas India Logistics Programme that was established in 2018 and was worth SGD 400 million. The fund was used to construct six logistics and industrial projects in Chennai, Bangalore, NCR, and Pune.

The six projects have a combined development potential of more than 12 million square feet. Two of the projects are up and running, with 2.8 million square feet of space leased.

According to CapitaLand Financial President, Jonathan Yap, the launch of the firm’s second logistics fund in India comes as part of the group’s strategy to expand its fund management business to generate recurring FRE (fee related earnings) and grow its AUM (assets under management) in a capital efficient way.

CapitaLand is one of the leading real estate investment management companies in the world. It manages six REITs (real estate investment trusts) and business trusts along with 20 private funds.

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