Singapore’s CapitaLand, a prominent real estate fund manager, on Wednesday said it has launched its second logistics private fund of ₹2,250 crore to expand in India’s logistics sector.
CapitaLand India Logistics Fund II will invest in the development of logistics assets in key warehousing and manufacturing hubs in six cities – Ahmedabad, Bengaluru, Chennai, Mumbai, National Capital Region (NCR) and Pune, as well as in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.
The fund will grow CapitaLand’s current total funds under management (FUM) of $79.2 billion across over 20 private funds and six listed trusts.
Jonathan Yap, President, CapitaLand Financial, CapitaLand Group, who oversees CapitaLand’s business in India, said, “The launch of CapitaLand’s second logistics fund in India is in line with the Group’s strategy to expand our fund management business to generate recurring Fee Related Earnings (FRE) and grow the Group’s assets under management (AUM) in a capital efficient way.”
“Our target is to grow CapitaLand’s FUM to at least $100 billion by 2024. We will do so by raising new funds across geographies and asset classes, as well as supporting the growth of our existing REITs, business trusts and private funds. We will continue to leverage CapitaLand’s real estate investment and fund management capabilities to grow our funds in our core markets of Singapore, China, India and Vietnam as well as our focus markets such as Australia, USA and Europe where there is strong investor demand,” Yap added.
CapitaLand India Logistics Fund II follows the deployment of its first logistics private fund, the $400 million Ascendas India Logistics Programme, which was launched in 2018, to develop six logistics and industrial projects in Bengaluru, Chennai, NCR, and Pune.
The six projects have a total development potential of over 12 million sq ft of space. Two of the projects are operational with 2.8 million sq ft of space that has been leased. Ascendas-Firstspace manages the assets of Ascendas India Logistics Programme and CapitaLand India Logistics Fund II.
“Ascendas-Firstspace has gone from strength to strength since its launch in 2017. Currently, we have six development assets across India and fully committed to our first fund. The steady growth demonstrates our investment and asset management capabilities as well as our customer-centric focus. The second fund will significantly increase our geographical footprint. With the growing penetration of e-commerce, modernisation of supply chain management and increased focus on manufacturing, we are well-positioned to tap on the rising demand for high-quality logistics and industrial space in India,” said Aloke Bhuniya, CEO, Ascendas-Firstspace.
This article was first published on livemint.com.