CapitaLand Investment Limited (CLI), a global real estate asset manager has received a capital commitment of $131 million from Daibiru Corporation, a new partner from Japan. This investment will raise the funds managed by its India private fund, the CapitaLand India Growth Fund 2 (CIGF2), to over $1 billion. Daibiru Corporation is part of Mitsui O S K Lines, a major shipping company in Japan. The firm will hold a 25% stake in the $525 million CIGF2, which focuses on top-quality business parks in key Indian cities. Interestingly, Mitsubishi Estate Co Ltd, another Japanese company, owns a 50% stake in CIGF2.
CLI retains a stake in the fund, which is part of its strategy for growth with less asset ownership while aligning with capital partners. Sanjeev Dasgupta, CEO of CLI India, stated that India is a key market for them, experiencing significant growth due to urbanization, digital advancements, and strong government support. He highlighted CLI’s 30 years of experience in India, resulting in attractive investment returns and a focus on sustainable value for partners.
Daibiru’s investment will provide it a 25% stake in the International Tech Park Chennai, located in a key business area and covering 2.6 million square feet, serving the IT and IT-enabled services sectors. The fund’s portfolio is expected to expand to include more parks in major cities like Bengaluru, Mumbai, and Pune. Hardik Gesota, who heads India Private Funds at CLI, mentioned the rising demand for quality business parks due to the growing IT sector and India’s role as a hub for Global Capability Centres. He noted that this sector offers stable income through long-term leases with leading companies.
Over the past 30 years, CLI has built a diverse portfolio in India that includes more than 40 IT and business parks, along with industrial, logistics, lodging, and data center assets across eight cities: Bengaluru, Chennai, Goa, Gurugram, Hyderabad, Kolkata, Mumbai, and Pune. CLI aims to more than double its current funds under management of RS. 458.8 billion ($7.4 billion) in India by 2028. CIGF2 is CLI’s second business park development fund in India, following the S$300 million Ascendas India Growth Programme, which was fully committed in 2015. Additionally, CLI has launched two logistics private funds in India, each with a size of $400 million.