Singapore’s CapitaLand Investment to invest over ₹90,200 crore in India by 2028

CapitaLand Investment (CLI), a leading real estate investment manager, announced its ambitious plan on September 4 to more than double its funds under management (FUM) in India by 2028. As of June 30, 2023, the company’s FUM in India stood at S$7.4 billion (approximately $5.66 billion). 

According to a Reuters report, the move aligns with CLI’s broader goal of reaching S$200 billion in global FUM by the same year.

Group CEO Lee Chee Koon emphasized the significant potential of the Indian market, stating, “The country is attracting demand from global corporations and institutional investors for quality real assets.” Koon also revealed that CLI is exploring opportunities in India's renewable energy sector and real estate private credit segments, signalling the company’s intent to diversify its regional investment portfolio, as Reuters quoted.

CapitaLand Investment's other plans for India

In a related development, CapitaLand Investment recently launched a fund dedicated to the development of business parks in India, a move expected to contribute an additional S$700 million to its FUM. This initiative underscores CLI’s commitment to expanding its footprint in India, which presents promising investment opportunities.

In a separate but connected strategy, CLI is actively working to streamline its asset portfolio in Singapore. The company announced plans to sell its 50 per cent stake in ION Orchard, one of Singapore’s most prestigious malls, to CapitaLand Integrated Commercial Trust (CICT). The property, valued at approximately S$1.85 billion ($1.4 billion), is part of CLI’s broader "asset-light growth strategy." This deal is expected to bring in about S$1.1 billion after adjustments, with the transaction targeted for completion by the fourth quarter of 2024.

The divestment of ION Orchard forms part of CLI’s goal to recycle S$3.6 billion in assets this year, surpassing its annual target of S$3 billion. Following this announcement, CLI’s shares surged by as much as 4.8 per cent, marking the biggest intraday gain since mid-July, despite the stock having faced challenges earlier in the year due to high interest rates and exposure to the Chinese market.

Meanwhile, CICT, Singapore's largest real estate investment trust by market capitalization, has also been navigating its portfolio strategy. In July, Bloomberg reported that CICT had been seeking to sell one of its prime office assets but faced pressure to reduce the asking price. CICT has indicated that it may continue to divest properties to enhance its financial flexibility as part of its ongoing portfolio optimisation strategy.