/CLI media

Grade A business park development fund launched in India: CLI

The fund has a target size of $525m to invest in business parks.

CapitaLand Investment Limited (CLI) said it secured $263m from a global institution for a 50% stake in CapitaLand India Growth Fund 2 (CIGF2), its development fund for business parks in India’s gateway cities.

It seeks to maintain a sponsor stake of 20% in the fund, in line with its asset-light strategy to grow its funds under management (FUM) while keeping strong alignment with its investors and partners.

Including CLI’s equity contribution for the 20% stake, the total equity commitment for the first closing is $368m. This is expected to contribute approximately $700m to CLI’s FUM.

CIGF2 acquired an equity stake of 70% in International Tech Park Chennai, Radial Road (ITPC-Radial Road) from CLI for $95m as its seed asset. 

CLI will continue to oversee the ITPC-Radial Road asset after its divestment. Located in the business hub of Chennai, the 2.6 million-square feet ITPC-Radial Road caters to the IT / IT-Enabled Services sector. 

The area has two blocks of Grade A office space, state-of-the-art infrastructure, and is well connected with all modes of transport including the upcoming metro line. 

ITPC-Radial Road is being developed in two phases, with Phase 1 targeted to be finished by third quarter of 2023.

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