Singapore’s CapitaLand Investment Limited (CLI) has launched a business park development fund, CapitaLand India Growth Fund 2, with a target fund size of 525 million Singapore dollars (₹3,261 crore) to invest in Grade A business parks in prime locations across gateway cities in India.
The real estate investment manager has secured ₹1,630 crore from a global institution for a 50 per cent stake in the fund’s first closing. It intends to maintain a sponsor stake of 20 per cent 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.
The total equity commitment for the first closing is ₹2,290 crore and this is expected to add approximately 700 million Singapore dollars to its FUM.
Seed asset
The fund has acquired a 70 per cent equity stake in International Tech Park Chennai, from CLI for ₹590 crore as its seed asset. CLI will continue to manage the asset after its divestment.
The business park located on 2.6 million square feet of area caters to the IT and IT-enabled services sector. It offers 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. The park is being developed in two phases, with Phase 1 expected to be completed by the third quarter of 2023.
CLI said that the project was attracting active tenant interest and leasing pre-commitments. “India is one of the fastest growing economies in the world, anchored by its strong macroeconomic fundamentals and rapid urbanisation. Besides business parks, we see opportunities to invest in new economy assets such as data centres, logistics and industrial properties in India through our private funds,” Simon Treacy, CEO, Private Equity Real Estate, CLI, said.