CapitaLand Investment Limited (CLI), a leading global real asset manager, has secured S$131 million capital commitment from a new Japanese capital partner, Daibiru Corporation, for its India private fund, CapitaLand India Growth Fund 2 (CIGF2). Daibiru Corporation is a real estate subsidiary of shipping major Mitsui O.S.K. Lines, Ltd in Japan. The capital commitment will increase CIGF2’s FUM to more than S$1 billion[1].
Daibiru Corporation will hold a 25% effective stake in the S$525 million CIGF2, which invests in Grade A business parks in prime locations across gateway cities in India. Another Japanese firm, Mitsubishi Estate Co. Ltd, holds a 50% stake in CIGF2. CLI continues to maintain a sponsor stake in the fund as part of its asset-light growth strategy while keeping alignment with the interests of its capital partners.
Mr Sanjeev Dasgupta, CEO, CLI India, said: “We welcome Daibiru Corporation on board as a capital partner for CIGF2. India is a core market for CLI where we have seen enormous growth driven by its increasing urbanisation, digitalisation and strong government support for investment. This partnership with Daibiru Corporation demonstrates CLI’s strengths in connecting capital partners with investment opportunities across geographies, and our commitment to contribute to India’s growing economy.Leveraging CLI’s 30 years of expertise in India, we have been able to generate attractive returns from our investments in the country, and we remain focused on creating sustainable value for our partners.”
Mr Hardik Gesota, Head, India Private Funds, CLI, said: “There is increasing demand from multinational corporations and local companies for quality business parks in India due to the rapid growth of the IT / IT-Enabled Services sector and India’s unique strengths as a hub for Global Capability Centres. The business parks sector is also one of the most resilient asset classes in India as it provides a stable, recurring income through long-term leases with industry-leading companies.”
Daibiru’s investment in CIGF2 will see the real estate company take a 25% effective stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road). Located in the business hub of Chennai, the 2.6 million-square feet ITPC-Radial Road caters to the IT / IT-Enabled Services sector. Over time, CIGF2’s portfolio is also expected to include business parks in major metro cities such as Bangalore, Mumbai and Pune.
CLI in India
Since CLI pioneered business parks in India 30 years ago, it has built a well-diversified portfolio comprising over 40 IT and business parks, industrial, logistics, lodging and data centre assets. CLI’s portfolio spans across eight cities in India – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune. CLI has set a target to more than double its current FUM of INR 458.8 billion[2] (S$7.4 billion) in India by 2028.
CIGF2 is CLI’s second business park development fund in India since the S$300 million Ascendas India Growth Programme, which was closed and fully committed in 2015. In addition, CLI has closed two logistics private funds in India, the Ascendas India Logistics Programme and CapitaLand Logistics Fund II, with a fund size of S$400 million each.
About Daibiru Corporation (www.daibiru.co.jp/english/)
Daibiru Corporation, a distinguished real estate developer with roots in Osaka, boasts a portfolio of 31 domestic and 4 international properties (excluding properties under development), primarily focusing on office and commercial buildings as of October 2024. The company has earned a sterling reputation for its development of high-specification buildings. Having celebrated its centennial milestone in October 2023, Daibiru Corporation has demonstrated a robust growth trajectory, not only continuing to expand its domestic operations but also extending its reach overseas since 2012, with a presence in Vietnam, Australia, and India. As a pivotal entity within the MOL Group, Daibiru Corporation is committed to actively investing in premium properties, thereby bolstering the group’s non-maritime and stable revenue streams through its real estate ventures.
About CapitaLand Investment Limited (www.capitalandinvest.com)
Headquartered and listed in Singapore, CapitaLand Investment Limited (CLI) is a leading global real asset manager with a strong Asia foothold. As at 30 September 2024, CLI had S$134 billion of assets under management, as well as S$102 billion of funds under management held via six listed real estate investment trusts and business trusts and a suite of private real asset vehicles that invest in thematic and tactical strategies. Its diversified real estate asset classes include retail, office, lodging, industrial, logistics, business parks, wellness, self-storage, data centres, private credit and special opportunities.
CLI aims to scale its fund management, lodging management and commercial management businesses globally and maintain effective capital management. As the investment management arm of CapitaLand Group, CLI has access to the development capabilities of and pipeline investment opportunities from CapitaLand’s development arm.
As a responsible company, CLI places sustainability at the core of what it does and has committed to achieve Net Zero carbon emissions for Scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.
[1] This includes total equity commitment of S$368 million from CIGF2’s first close in August 2023.
[2] Exchange Rate: S$1 = INR 62. The FUM of INR includes announced acquisitions/divestments from listed and private funds not yet completed, committed but undeployed capital for private funds on a leveraged basis and forward purchase contracts, as at 30 June 2024
