Singapore’s CapitaLand launches second logistics fund in India

Singapore's CapitaLand launches second logistics fund in Inda
Ascendas-Firstspace Chennai, Oragadam (pictured) is strategically located in Chennai’s largest and most developed industrial belt. Image:CapitaLand

CapitaLand has launched CapitaLand India Logistics Fund II, its second S$400 million (INR 22.5 billion) logistics private fund, to expand in India’s logistics sector, one of the largest globally.  

CapitaLand India Logistics Fund II will invest in the development of logistics assets in key warehousing and manufacturing hubs in six major cities – Ahmedabad, Bangalore, Chennai, Mumbai, National Capital Region (NCR), and Pune, as well as in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow. 

CapitaLand said the fund will grow CapitaLand’s current total Funds Under Management (FUM) of S$79.2 billion across over 20 private funds and six listed trusts, further reinforcing CapitaLand’s position as one of the leading real estate fund managers in the world.

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CapitaLand India Logistics Fund II follows the deployment of CapitaLand’s first logistics private fund, the S$400 million Ascendas India Logistics Programme launched in 2018, to develop six logistics and industrial projects in Bangalore, Chennai, NCR, and Pune.

The six projects have a total development potential of over 12 million sq ft of space.  Two of the projects are operational with 2.8 million sq ft of space that has been leased.  

Ascendas-Firstspace manages the assets of Ascendas India Logistics Programme and CapitaLand India Logistics Fund II.

“The launch of CapitaLand’s second logistics fund in India is in line with the Group’s strategy to expand our fund management business to generate recurring Fee Related Earnings (FRE)8 and grow the Group’s assets under management (AUM)9 in a capital efficient way. In 1Q 2021, CapitaLand’s FRE increased by more than 30% year-on-year.  Our target is to grow CapitaLand’s FUM to at least S$100 billion by 2024.  We will do so by raising new funds across geographies and asset classes, as well as supporting the growth of our existing REITs, business trusts and private funds.  We will continue to leverage CapitaLand’s real estate investment and fund management capabilities to grow our funds in our core markets of Singapore, China, India and Vietnam as well as our focus markets such as Australia, USA and Europe where there is strong investor demand,” said Jonathan Yap, President, CapitaLand Financial, CapitaLand Group.