CapitaLand to Double Investment in India to Over Rs 90,280 Cr

Singapore, Sep 4 (PTI) Singapore-based diversified real estate group CapitaLand is planning to double its investment in India to over Rs 90,280 crore by 2028, the city-state's envoy to India said on Wednesday.

In a post on X, High Commissioner Simon Wong said it is good to see Singaporean companies doubling down on investments in India.

"Singapore's CapitaLand, one of Asia's largest diversified real estate groups, plans to more than double its funds under management in India to more than S$14.8 billion (>INR 90,280 Cr) by 2028," he said, citing an article published in The Edge newspaper.

The news report came on the heels of Prime Minister Narendra Modi's visit to Singapore, aimed at deepening the India-Singapore strategic partnership and attracting investment from the Southeast Asian nation.

Quoting CapitaLand Investment (CLI), the newspaper said, the company aims to more than double its funds under management (FUM) in India by 2028, up from its FUM of USD 7.4 billion – or INR 458.8 billion – as at June 30. The move will contribute to CLI's aim to achieve USD 200 billion in FUM by 2028 as well.

“India is a strategic market for us and a key contributor to CLI's overall business. India has been one of our fastest-growing markets, where our investments have tripled in the last seven years. With India's GDP forecasted to grow 7% in 2024 and its trajectory to be the world's third-largest economy in the next five years, the country is attracting demand from global corporations and institutional investors for quality real assets,” CLI's group CEO Lee Chee Koon was quoted as saying in the report.

“Given our deep expertise in the country and the strong tailwinds, we are confident of more than doubling our current FUM of USD 7.4 billion in India by 2028. This is also aligned with our priority on geographical diversification to achieve better capital rebalancing,” he said.

According to Sanjeev Dasgupta, CEO of CLI India, India presents tremendous potential for the company.

"We will drive growth through our listed CapitaLand India Trust (CLINT) and our private funds. We have successfully established four private funds across logistics and business parks, and we see opportunities for data centre funds in India riding on the country's fast-growing digital economy,” he said.

CLI entered India 30 years ago with the development of its first IT park, International Tech Park Bangalore (ITPB) via Ascendas. Ascendas merged with Singbridge to form Ascendas-Singbridge in 2015. Ascendas-Singbridge subsequently merged with CapitaLand in 2019. After the restructuring of CapitaLand, CLI was listed in 2021. Today, the group has 14 business parks and IT parks spanning 23.5 million square feet of space across Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon.

The debt market in Indian real estate has a potential USD 170 billion financing opportunity between 2024 and 2026, driven by the increasing demand for residential construction finance, CLI said.