CapitaLand Investment (CLI) has secured a SGD 131 million investment from Japan's Daibiru Corporation, enhancing its CapitaLand India Growth Fund 2 (CIGF2) and raising its funds under management to over SGD 1 billion. Daibiru now holds a 25% stake in the SGD 525 million fund, which targets Grade A business parks in India's key cities. Mitsubishi Estate Co. holds a 50% stake, while CLI retains a sponsor position as part of its asset-light strategy. The investment also gives Daibiru a 25% stake in International Tech Park Chennai, Radial Road.
CapitaLand Investment (CLI) recently strengthened its presence in the Indian real estate market with a capital commitment of SGD 131 million from Daibiru Corporation. This fresh investment bolsters CLI's India-focused private fund, CapitaLand India Growth Fund 2 (CIGF2), bringing its total funds under management (FUM) to over SGD 1 billion. The partnership with Daibiru, a prominent real estate subsidiary of Japan's Mitsui O.S.K. Lines, underscores growing international interest in India's booming commercial real estate sector, especially in high-quality business parks located in strategic urban hubs.
Daibiru's investment in CIGF2 translates into a 25% effective stake in the SGD 525 million fund, which is dedicated to acquiring and developing Grade A business parks across major gateway cities in India. These high-standard office spaces, often equipped with advanced facilities and designed for global tenants, are increasingly sought after by companies expanding or relocating within the region. Through CIGF2, CLI aims to leverage this demand by identifying prime business park assets that meet the requirements of multinational corporations and other large enterprises.
The strategic positioning of CIGF2 is further solidified by the involvement of Mitsubishi Estate Co., another major Japanese player, which holds a 50% stake in the fund. CLI, in line with its asset-light growth model, retains a sponsor stake in CIGF2, allowing it to benefit from the fund's success while focusing on its core strengths in investment and asset management. This approach enables CLI to scale its investments without heavily leveraging its own capital, promoting sustainable growth.
Beyond its financial contribution to CIGF2, Daibiru's commitment includes a 25% effective stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road), a notable property in CLI's portfolio. This park is part of a larger ecosystem of Grade A business facilities that cater to global and local companies alike, highlighting Daibiru's direct involvement in India's fast-evolving commercial landscape. With this stake, Daibiru can now tap into the robust demand for premium office spaces in Chennai, a city known for its thriving IT and business services sectors.
This partnership exemplifies how international investors view India's commercial real estate market as a lucrative investment, especially in the business parks segment, which aligns with the country's rapid urban and economic development. CLI's collaboration with Daibiru and Mitsubishi Estate reflects a growing trend of global capital flowing into Indian real estate, a trend expected to stimulate further growth in the sector. For CLI, this move reinforces its position as a significant player in India, attracting high-calibre tenants and contributing to the long-term stability of its portfolio.
The capital commitment from Daibiru Corporation highlights CLI's strategy to expand its footprint in India's commercial real estate market, focusing on high-quality business parks that attract multinational tenants. This partnership, which includes the backing of Mitsubishi Estate, underscores the confidence of major international players in India's growth potential. By maintaining a sponsor stake in CIGF2, CLI continues to drive asset-light expansion, leveraging global interest to scale its investments and meet rising demand for premium office spaces across India's urban centres.
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