Singapore-based real estate conglomerate CapitaLand Investment (CLI) has unveiled plans to significantly enhance its investment footprint in India, targeting a substantial increase to over $14.8 billion by 2028. This strategic decision was publicly announced by Singapore’s envoy to India, Simon Wong, through the social media platform X, drawing commendations and attention from industry stakeholders.
In celebration of its 30th anniversary in India, CapitaLand is positioning itself to leverage India’s robust economic growth trajectory. Group CEO Lee Chee Koon emphasized India’s importance as a key strategic market. “India has emerged as one of our fastest-growing markets, with investments having tripled over the past seven years. Given the forecasted 7% GDP growth in 2024 and its expected ascent to the world’s third-largest economy within five years, the nation is increasingly attracting global corporations and institutional investors seeking premium real assets,” Koon stated in an interview with The Edge. Koon further highlighted that CapitaLand’s current Funds Under Management (FUM) in India, valued at $7.4 billion, is set to more than double by 2028. This expansion aligns with CapitaLand’s strategic emphasis on geographical diversification and capital rebalancing.
Sanjeev Dasgupta, CEO of CLI India, reinforced Koon’s observations, noting that growth in India will be driven through a combination of listed and private investment channels. “Our expansion strategy includes leveraging our listed entity, CapitaLand India Trust (CLINT), as well as our private funds. To date, we have established four private funds focused on logistics and business parks, with notable potential in the data center sector, which is poised for rapid expansion in line with India’s burgeoning digital economy.”
CapitaLand’s presence in India is substantial, with 14 business and IT parks across major cities including Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon. These properties encompass a total area of 23.5 million square feet, and the company plans to escalate development activities to meet the growing demand for high-quality office spaces in urban centers. The company has also made significant inroads into the logistics and industrial sectors since its entry in 2016. Currently managing 9.1 million square feet across 12 assets, CapitaLand’s logistics platform, Ascendas-Firstspace (AFS), is poised for further expansion to accommodate increasing demand.
In the data center sector, CLI is addressing the needs of both enterprise and hyperscale clients. The company is developing four cutting-edge, sustainable data centers in Mumbai, Chennai, Hyderabad, and Bangalore, with a combined power capacity of 244 megawatts. The first of these facilities, located in Navi Mumbai and Hyderabad, is expected to commence operations by 2025. The Ascott Limited, CapitaLand’s lodging arm, represents another key growth area. Operating seven properties across six cities, Ascott plans to expand its portfolio with eight new openings, including new locations in Goa and Gurugram by 2024.
CapitaLand is also exploring opportunities in India’s renewable energy and private credit sectors. The Indian government’s ambitious target of 500 gigawatts of renewable energy by 2030 presents significant prospects for future growth. Additionally, the real estate private credit sector, anticipated to require $170 billion in financing between 2024 and 2026, offers attractive opportunities for institutional investors.
CapitaLand’s engagement in India began three decades ago with the development of the International Tech Park Bangalore (ITPB) through Ascendas. The company underwent a series of mergers and rebrandings, including the 2015 merger of Ascendas and Singbridge to form Ascendas-Singbridge, which then integrated with CapitaLand in 2019. Following corporate restructuring, CLI was listed as a globally diversified real estate investment firm in 2021. With this latest commitment, CapitaLand aims to consolidate its leadership in India’s dynamic real estate sector, reinforcing its strategic alignment with the country’s economic aspirations and solidifying its role in India’s infrastructure development.
