CapitaLand Investment’s Bold Vision: Doubling Indian Investments by 2028

Hey, did you hear what CapitaLand Investment (CLI) is planning in India? It’s big! They’ve just announced they’re more than doubling their investments in the country by 2028, aiming to grow their funds under management (FUM) to an impressive ₹458.8 billion by June 2024. That’s right, they’re going all in, and here’s how they’re planning to make it happen.

At a special event in Mumbai celebrating 30 years of operations in India, CLI laid out their strategy. The company, which has been growing fast in India, sees massive potential here. Why? India’s economy is booming, with a projected 7% GDP growth in 2024, and it’s on track to become the world’s third-largest economy in the next five years. Naturally, global corporations and investors are looking for high-quality real estate assets, and CLI is ready to meet that demand.

CLI’s Roadmap for Growth

Lee Chee Koon, CLI’s Group CEO, couldn’t have put it better. He said, “India is a key market for us and plays a huge role in our global growth strategy. Our investments have tripled in the last seven years alone!” With CLI's vast experience in India, they’re confident they can more than double their current FUM to S$7.4 billion by 2028.

What’s exciting is how CLI is diversifying its portfolio. They’re not just sticking to what they know; they’re exploring new avenues like renewable energy and real estate private credit. This is all part of their strategy to expand beyond traditional sectors and build a broader, more resilient business model.

30 Years of Success in India

CLI has been in India for three decades, and they’ve built a solid reputation along the way. They first entered the Indian market through the development of the International Tech Park Bangalore (ITPB), which became a major success. Today, CLI has expanded its footprint to 14 business and IT parks across major cities like Bangalore, Chennai, Hyderabad, Pune, Mumbai, and Gurgaon. More than 250,000 professionals work out of these parks, and CLI plans to add even more to its portfolio.

They’re adopting a smart, multi-pronged strategy to grow. With over 16 million sq-ft of land under development, they’re pushing forward to address the growing demand for premium office spaces. Through their listed CapitaLand India Trust (CLINT), CLI plans to develop and secure prime assets, ensuring sustained growth. And by raising third-party capital, they’ll continue building new private funds, focusing on greenfield developments and value-added strategies.

Logistics, Industrial, and Data Centers: A Strong Growth Story

CLI isn’t just betting on office spaces; they’re also going all out in the logistics and industrial sectors. Since entering the logistics market in 2016, CLI has grown its portfolio to 9.1 million sq-ft. Through their platform Ascendas-Firstspace (AFS), CLI is focusing on Tier 1 cities, catering to the growing demand for high-quality logistics infrastructure.

But that’s not all. CLI has big plans for India’s fast-growing data center market, which they entered in 2021. They’re already developing four state-of-the-art data centers in Mumbai, Chennai, Hyderabad, and Bangalore, with a combined power capacity of 244 megawatts. The first two centers, located in Navi Mumbai and Hyderabad, are set to go live in 2025, marking a new chapter in India’s data infrastructure.

Expanding the Lodging Portfolio

CLI’s lodging business, led by The Ascott Limited, is also growing rapidly. They’re aiming to strengthen their presence in metro cities and tier-2 markets. With seven properties already operating across India, and more on the way, they’re expanding their lodging portfolio with management and franchise contracts to capitalize on India’s growing travel and hospitality sector.

The Renewable Energy and Private Credit Frontier

CLI is also keeping an eye on India’s booming renewable energy sector. India has set an ambitious goal of generating 500 GW of renewable energy by 2030, and CLI plans to contribute by meeting the energy needs of their tenants across data centers and business parks.

On top of that, CLI is exploring real estate private credit, a sector gaining serious momentum in India. With the real estate debt market expected to offer a $170 billion financing opportunity between 2024 and 2026, CLI is positioning itself to tap into this growing segment, further diversifying its investment portfolio.

The Future Looks Bright for CLI in India

With all these exciting developments, CLI is set to play a pivotal role in shaping India’s real estate and infrastructure landscape over the next decade. They’re not just investing in assets; they’re helping to create jobs, build infrastructure, and contribute to India’s economic development. From business parks to logistics, data centers, and even renewable energy, CLI’s commitment to India is stronger than ever.