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

C31 : C31 0% has launched a second logistics private fund in India worth S$400 million for expansion in the country's logistics sector, the property giant said on Wednesday.

The CapitaLand India Logistics Fund II will invest in the development of key warehousing and manufacturing hubs in six major cities including Ahmedabad, Bangalore, Chennai, Mumbai, the National Capital Region and Pune, and in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.

Ascendas-Firstspace will be managing the assets of CapitaLand India Logistics Fund II. It also manages the assets of CapitaLand's first logistics private fund in India, the S$400 million Ascendas India Logistics Programme.

President of CapitaLand Financial Jonathan Yap, who oversees CapitaLand's business in India, said: "With our second logistics fund, we will further extend our logistics presence in India and deliver more quality logistics facilities, while generating attractive returns for our investors."

He said the group will continue to invest in India's logistics sector through its private funds and its business trust Ascendas India Trust, as it sees opportunities in India's logistics sector.

The growing e-commerce and consumerism amid the pandemic had generated strong demand for its warehouse and distribution facilities, Mr Yap said, noting that CapitaLand targets to develop a logistics portfolio of 20 to 25 million square foot of space in India by 2025.

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Earlier, CapitaLand-managed Ascendas India Trust (a-iTrust) also announced it is investing 12 billion rupees (S$216.6 million) to develop and operate the first of two buildings planned for its inaugural data centre campus in Navi Mumbai, India.

"Expanding in new economy asset classes such as logistics will further diversify and strengthen the resilience of CapitaLand's portfolio," Mr Yap said.

Noting that CapitaLand targets to grow its funds under management to at least S$100 billion by 2024, Mr Yap added that the group "will do so by raising new funds across geographies and asset classes, as well as supporting the growth of (its) existing Reits, business trusts and private funds".

Currently, the group's portfolio in India consists of over 20 businesses and IT parks, industrial, lodging, and logistics properties, as well as a data centre campus across seven cities. Eighty per cent of the portfolio is under a-iTrust and two private funds, Ascendas India Growth Programme and Ascendas India Logistics Programme, and 20 per cent is under its balance sheet.

Ascendas India Logistics Programme has been fully committed and has six logistics assets across India under the fund.

Shares of CapitaLand closed at S$3.74 on Wednesday, down 0.80 per cent.