CapitaLand plans to grow its AUM in India to S$7bn by 2024

CapitaLand plans to grow its AUM in India to S$7bn by 2024
Mr Lee Chee Koon, Group CEO, CapitaLand Group and Mr Jonathan Yap, President, CapitaLand Financial speaking to media at CapitaLand's media conference in India ,Photo: Courtesy of CapitaLand

CapitaLand, headquartered and listed in Singapore, owns and manages a global portfolio worth S$129.1 billion, plans to grow its assets under management (AUM) in the India, from the current S$3.3 billion (INR170 billion) to S$7 billion (INR362 billion) by 2024.

CapitaLand will invest capital to grow development pipeline and work with capital partners to grow fund management business in the next five years, according to the announcement by CapitaLand’s Group CEO at the media conference in Bangalore.

CapitaLand has 17.4 million sq ft of commercial space comprising business and IT parks, industrial and logistics properties in Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai and Pune. 80% of the portfolio is under Ascendas India Trust (a-iTrust) and two private funds – Ascendas India Growth Programme and Ascendas India Logistics Programme , and 20% is under its balance sheet.

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CapitaLand’s business parks in India have an occupancy rate of over 95% catering to both multinational corporations and local companies that employ over 120,000 skilled professionals. With India’s growing young workforce, e-commerce, IT and IT-enabled services (ITES) sectors and demand for high-quality logistics facilities, the target is to double CapitaLand’s business and IT parks, industrial and logistics properties to about 40 million sq ft by 2024.

CapitaLand’s developments underway in India include 17.9 million sq ft of business park space in Bangalore, Chennai, Gurgaon, Hyderabad and Pune when completed.  Another 7.2 million sq ft through forward purchases have been signed up and are under construction. This includes IT parks in Mumbai and Hyderabad, a seventh warehouse at Arshiya Free Trade Warehousing Zone, Panvel, near Navi Mumbai, and BlueRidge 3, an IT/ITES Special Economic Zone development in Hinjewadi Phase 1 in Pune.  CapitaLand is also building up a logistics asset portfolio in India with 4.3 million sq ft planned for development.

“CapitaLand’s integration of Ascendas-Singbridge portfolio since July 2019 has strengthened our competitive edge globally and in India, one of our strategic markets for growth where we have fully integrated capabilities. We see strong potential to leverage new economy trends such as the growth in e-commerce, urbanisation and knowledge economies to expand in the business park and logistics sectors, which are core sectors for the India economy. For our lodging business under Ascott, we will continue to build on the recurring fee income by seeking opportunities to expand primarily through management contracts, franchises and leases in key cities with strong demand from expatriates and travellers,” said Lee Chee Koon, Group CEO, CapitaLand Group.