CapitaLand aims to more than double India AUM to S$7b by 2024

Singapore

PROPERTY group CapitaLand plans to more than double its assets under management (AUM) in India to S$7 billion by 2024, from S$3.3 billion currently, riding on the dynamism of the world's second most populous country.

To achieve this, CapitaLand will invest capital towards growing its development pipeline and work with capital partners to expand its fund management business over the next five years, it said.

These plans were announced by group CEO Lee Chee Koon in Bangalore, at CapitaLand's first media conference in India since the completion of its S$11 billion acquisition of Ascendas-Singbridge on June 30, the mainboard-listed company said in a statement on Tuesday.

With India's growing young workforce, e-commerce, and demand for high-quality logistics facilities, the aim is to increase the group's commercial space portfolio there to 40 million square feet (sq ft) by 2024, CapitaLand said. The group now has about 17.4 million sq ft of commercial space in India across Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai and Pune.

About 80 per cent of this portfolio is under Ascendas India Trust (a-iTrust) and two private funds - Ascendas India Growth Programme and the Ascendas India Logistics Programme - with the remainder under its balance sheet, the group said.

As at June 30, a-iTrust's AUM stood at S$1.9 billion. This is on top of the S$300 million Ascendas India Growth Programme that was launched in 2013 with GIC as the principal investor, and the S$400 million Ascendas India Logistics Programme that was set up in 2018 with Temasek Holdings as the principal investor.

According to the group, CapitaLand's business parks in India have an occupancy rate of over 95 per cent, catering to both multinational corporations and local companies that employ over 120,000 professionals.

CapitaLand also has a network in India of more than 1,500 residential units across 10 lodging properties owned and/or managed by its wholly owned lodging business unit, The Ascott. Three properties are up and running in Chennai and Mumbai, while seven serviced residences will open by 2022, the group noted.

"We see strong potential to leverage new economy trends such as the growth in e-commerce, urbanisation and knowledge economies to expand in the business park and logistics sectors, which are core sectors for the India economy," said Mr Lee.

"For our lodging business under Ascott, we will continue to build on the recurring fee income by seeking opportunities to expand primarily through management contracts, franchises and leases in key cities with strong demand from expatriates and travellers."

Jonathan Yap, president of CapitaLand Financial, who also oversees CapitaLand's business in India, said the group had over the last 25 years built deep expertise in India across the real estate value chain from owning and developing to leasing and managing properties, as well as managing funds.

"a-iTrust and private funds remain integral to CapitaLand's expansion, enabling us to grow our AUM and build scale along with our capital partners... We are also looking to grow our funds business in India to expand and diversify our portfolio," he said

CapitaLand shares closed at S$3.56 on Tuesday, up three cents or 0.85 per cent following this announcement.