CapitaLand launches second logistics private fund in India worth S$400m

This follows CapitaLand’s S$400m Ascendas India Logistics Programme it launched in 2018.

CapitaLand launched its second logistics private fund of $400m in India that will further expand India’s logistic sector.

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

The launching of the second logistics fund will grow CapitaLand’s current total Funds under Management (FUM) of $79.2b across over 20 private funds and six listed trusts.

“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 and grow the group’s assets under management in a capital-efficient way,” said Jonathan Yap, president of CapitaLand Financial, CapitaLand Group, who oversees the company’s business in India.

Yap said CapitaLand targets to grow its FUM to at least $100b by 2024 by raising new funds “across geographies and asset classes” and by supporting the growth of its real estate investment trusts, business trusts, and private funds.

He added that they will continue to leverage on the company’s real estate investment and fund management capabilities to grow funds in their core markets of Singapore, China, India, and Vietnam; and focus on the markets of Australia, USA, and Europe “where there is strong investor demand.”

Expanding in new economy asset classes such as logistics will strengthen the resilience of the company’s portfolio, Yap said, adding that they see significant opportunity in India’s logistic sector which continues to thrive especially during the pandemic due to growing e-commerce and consumerism.

“We will continue to invest in India’s logistics sector through our private funds and our business trust, Ascendas India Trust which currently has seven warehouses located at the Arshiya Free Trade Warehousing Zone in Navi Mumbai,” he said.

CapitaLand targets to develop a logistics portfolio of 20 to 25 million square feet of space in India by 2025, according to Yap.

The new logistics fund came following the first funding of S$400m Ascendas India Logistics Programme in 2018 for the development of 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. that has been leased.