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CapitaLand Investment Limited (CLI), a global real asset manager, has secured S$261 million capital commitment from a new Japanese capital partner, Mitsui O.S.K. Lines, Ltd. (MOL), for its Southeast Asia (SEA) and India private funds. A shipping major in Japan, MOL has committed $130 million capital in CapitaLand SEA Logistics Fund (CSLF), CLI’s first logistics fund in SEA. This marks the second close of CSLF, bringing its total equity size to S$400 million. The recent raise includes a total equity commitment of S$270 million from CSLF’s first close in February 2023 as of earlier this month. Separately, CLI is also closing its $525 million CapitaLand India Growth Fund 2 (CIGF2) with S$131 million capital commitment from Daibiru Corporation, the real estate subsidiary of MOL. The capital commitment will increase CSLF’s potential funds under management (FUM) to $1 billion and CIGF2’s FUM to more than $1 billion and includes a total equity commitment of S$368 million from CIGF2’s first close in August 2023.MOL holds a 32.5% stake in CSLF, which invests in and develops smart logistics infrastructure in SEA. Daibiru will hold a 25% effective stake in CIGF2, which invests in Grade A business parks in prime locations across gateway cities in India. Another Japanese firm, Mitsubishi Estate Co. Ltd, holds a 50% stake in CIGF2. CLI continues to maintain a sponsor stake in both funds as part of its asset-light growth strategy while keeping alignment with the interests of its capital partners.“Our core markets of SEA and India have tremendous growth potential as rising urbanisation, supply chain rationalisation, and digitalisation continue to drive demand for assets such as logistics and business parks. CLI’s fund and asset management expertise, coupled with strong on-the-ground execution capabilities, in Japan, India and across the diverse markets in SEA enables us to source for off-market deals and create value for our partners. We look forward to deepening our partnership with MOL and remain focused on seeking attractive opportunities to deliver quality returns to our fund investors as we grow our private equity real assets business,” said Lee Chee Koon, Group CEO, CLI.Daibiru’s investment in CIGF2 will see the real estate company take a 25% stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road). The 2.6 million-square feet ITPC-Radial Road caters to the IT / IT-Enabled Services sector.The office building will have two Grade A office blocks in the business hub of Chennai. The phase- 1 was completed in August 2023, while Phase 2 is expected to complete in December 2024.Driven by demand from multinational corporations and local companies for quality business parks, CLI will continue to seek investment opportunities in major metro cities such as Bangalore, Mumbai and Pune to expand CIGF2’s portfolio.Additionally, the capital investment from MOL enhances CSLF’s ability to expedite its expansion across various greenfield and brownfield logistics projects. A key asset in this portfolio is OMEGA 1 Bang Na, a strategically positioned greenfield built-to-suit facility located within a prominent logistics hub in the Greater Bangkok Metropolitan area, Thailand. This freehold logistics campus with a gross floor area exceeding 2 million square feet, OMEGA 1 Bang Na is set to become Thailand’s largest standalone warehouse upon completion. This project also represents CLI’s inaugural logistics venture in Thailand, with Phase 1 of construction projected to be finalized by early 2026.CIGF2 is CLI’s second business park development fund in India since the S$300 million Ascendas India Growth Programme, which was closed and fully committed in 2015. In addition, CLI has closed two logistics private funds in India, the Ascendas India Logistics Programme and CapitaLand Logistics Fund II, with a fund size of S$400 million each. CLI portfolio comprising over 40 IT and business parks, industrial, logistics, lodging and data centre assets with a total FUM of S$7 billion. CLI’s portfolio spans across eight cities in India – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune.Separately, CLI has launched three thematic fund strategies in SEA over the past two years. In addition to CSLF, the other two are the Extra Space Asia self-storage platform, one of the largest self-storage businesses in Asia, and the CapitaLand Wellness Fund, CLI’s inaugural wellness and healthcare-related real estate fund.CLI has more than 370 properties across seven countries with a total FUM of S$41 billion in SEA. CLI’s portfolio in SEA comprises retail, office, lodging, industrial, logistics, business parks, wellness, self-storage and data centres. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.
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