SINGAPORE (THE BUSINESS TIMES) – CapitaLand has launched a second logistics private fund in India worth $400 million for expansion in the country’s logistics sector, the property giant said on Wednesday (July 7).
The CapitaLand India Logistics Fund II will invest in the development of key warehousing and manufacturing hubs in six major cities, namely Ahmedabad, Bangalore, Chennai, Mumbai, the National Capital Region and Pune, and in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.
Ascendas-Firstspace will be managing the assets of the CapitaLand India Logistics Fund II. It also manages the assets of CapitaLand’s first logistics private fund in India, the S$400 million Ascendas India Logistics Programme.
Ascendas-Firstspace is a joint venture between Ascendas-Singbridge Group and Indian industrial real estate specialist Firstspace Realty to build logistics and industrial facilities in major warehousing and manufacturing hubs across India.
The president of CapitaLand Financial, Mr Jonathan Yap, who oversees CapitaLand’s business in India, said: “With our second logistics fund, we will further extend our logistics presence in India and deliver more quality logistics facilities, while generating attractive returns for our investors.”
He said the group will continue to invest in India’s logistics sector through its private funds and its business trust Ascendas India Trust (a-iTrust), as it sees opportunities in India’s logistics sector.
The growing e-commerce and consumerism amid the Covid-19 pandemic has generated strong demand for its warehouse and distribution facilities, Mr Yap said, noting that CapitaLand has set a target to develop a logistics portfolio of 20 to 25 million sq ft of space in India by 2025.
Earlier, a-iTrust also announced that it is investing 12 billion rupees ($216.6 million) to develop and operate the first of two buildings planned for its inaugural data centre campus in Navi Mumbai.
Mr Yap said: “Expanding in new economy asset classes such as logistics will further diversify and strengthen the resilience of CapitaLand’s portfolio.”
Noting that CapitaLand targets to grow its funds under management to at least $100 billion by 2024, Mr Yap added that the group “will do so by raising new funds across geographies and asset classes, as well as supporting the growth of (its) existing Reits (real estate investment trusts), business trusts and private funds”.
Currently, the group’s portfolio in India consists of more than 20 businesses and information technology parks, industrial, lodging and logistics properties across seven cities, as well as the data centre campus.
Eighty per cent of the portfolio is under a-iTrust and two private funds, the Ascendas India Growth Programme and Ascendas India Logistics Programme, and 20 per cent is under its balance sheet.
Ascendas India Logistics Programme has been fully committed and has six logistics assets across India.
Shares of CapitaLand were trading at $3.73 as at 1.57pm on Wednesday, down four cents, or 1.1 per cent.
