CapitaLand India Logistics Fund II will grow the Group’s funds under management reinforcing its position as one of the world’s leading real estate fund managers
CapitaLand has launched its second logistics private fund of S$400 million (Rs 22.5 billion) to expand in India’s logistics sector, one of the largest globally.
CapitaLand India Logistics Fund II will invest in the development of logistics assets in key warehousing and manufacturing hubs in six major cities – Ahmedabad, Bangalore, Chennai, Mumbai, National Capital Region (NCR), and Pune, as well as in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.
CapitaLand India Logistics Fund II will grow CapitaLand’s current total Funds Under Management (FUM) of S$79.2 billion across over 20 private funds and six listed trusts, further reinforcing CapitaLand’s position as one of the leading real estate fund managers in the world.
CapitaLand Financial, CapitaLand Group, President Jonathan Yap 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 the fund management business to generate recurring Fee Related Earnings (FRE) and grow the Group’s assets under management (AUM) in a capital efficient way.
“In 1Q 2021, CapitaLand’s FRE increased by more than 30% year-on-year. Our target is to grow CapitaLand’s FUM to at least S$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,” said Jonathan Yap.
Jonathan Yap said the company will continue to leverage CapitaLand’s real estate investment and fund management capabilities to grow funds in core markets of Singapore, China, India and Vietnam as well as focus markets such as Australia, USA and Europe where there is strong investor demand.
Ascendas-Firstspace Chief Executive Officer Aloke Bhuniya said Ascendas-Firstspace has gone from strength to strength since its launch in 2017.
“Currently we have six development assets across India and fully committed 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.