Singapore’s CapitaLand launches $300m logistics fund in India

Photo: Reuters

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.