CapitaLand Investment (CLI) has launched CapitaLand India Growth Fund 2 (CIGF2), a business park development fund with a target fund size of Singapore $525 million to invest in Grade A business parks across India.
CLI has secured S$263 million (Rs 16.3 billion) in funding from a global institution for a 50% stake in the fund’s first closing. CLI plans to keep a 20% sponsor stake in the fund.
The total equity commitment for the first closing is S$368 million (Rs 22.9 billion), including CLI’s equity contribution for the 20% stake. This is expected to increase CLI’s funds under management (FUM) by approximately S$700 million.
Simon Treacy, CEO, (Private Equity Real Estate), CLI, said, “Besides business parks, we see opportunities to invest in new economy assets such as data centres, logistics, and industrial properties in India through our private funds.”
As its seed asset, CIGF2 acquired a 70% equity stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road) from CLI for S$95 million (Rs 5.9 billion).
CLI will continue to manage the ITPC-Radial Road asset after its divestment. The 2.6 million-sq ft IT park features two blocks of Grade A office space and is being built in two phases, with Phase 1 set to open in the third quarter of 2023.
