CapitaLand Investment, a Singapore-based real estate investment manager, plans to more than double its India funds under management (FUM) to over $11.4 billion by 2028. This ambitious growth strategy is driven by India’s expanding economy and increasing demand in key sectors like data centers, renewable energy, and private credit for real estate. CapitaLand, which currently manages $5.7 billion in India, is looking to broaden its portfolio beyond its existing assets in business parks, industrial and logistics spaces, and hospitality.
Despite its optimism about India’s prospects, CapitaLand faces challenges common to foreign investors, including concerns over taxation, capital repatriation, and currency volatility. According to Andrew Lim, CapitaLand’s Group Chief Operating Officer, investments in India already account for 7% of the company’s total asset base, a significant rise from 3.5% in 2019. By 2028, this figure is expected to surpass 10%.
The firm also intends to tap into India’s rapidly growing capital markets. Sanjeev Dasgupta, CEO of CapitaLand Investment India, revealed that one potential approach involves bundling its renewable energy assets into an Infrastructure Investment Trust (InvIT) once they become operational.
CapitaLand has a long history in India, starting with the development of business parks through its subsidiary Ascendas, which pioneered the concept three decades ago with the creation of the Whitefield IT park in Bengaluru. However, over time, competitors such as Blackstone and Brookfield have gained ground, emerging as major players in India’s real estate market. To close this gap, CapitaLand is now pursuing both organic and inorganic growth opportunities.
The company’s future growth in India is set to focus heavily on data centers and renewable energy. Currently, it has four data centers under construction across Navi Mumbai, Bengaluru, Hyderabad, and Chennai. Additionally, CapitaLand is exploring renewable energy solutions to support its data center operations.
Another key focus for CapitaLand is private credit. With Indian banks constrained by regulations limiting their ability to lend to real estate developers, CapitaLand sees an opportunity to enter this space, especially as bankruptcy laws improve, making real estate lending more attractive.
While India remains a critical market for CapitaLand, some macroeconomic concerns linger. Lim highlighted that global investors are still determining how to price India’s market, with questions around taxation and realistic return expectations shaping future investment decisions.
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