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CapitaLand Investment Limited (CLI), a leading global real asset manager, has secured S$131 million capital commitment from a new Japanese capital partner, Daibiru Corporation, for its India private fund, CapitaLand India Growth Fund 2 (CIGF2). Daibiru Corporation is a real estate subsidiary of shipping major Mitsui O.S.K. Lines, Ltd in Japan. The capital commitment will increase CIGF2’s FUM to more than S$1 billion.
Daibiru Corporation will hold a 25% effective stake in the S$525 million 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 the fund as part of its asset-light growth strategy while keeping alignment with the interests of its capital partners.
Sanjeev Dasgupta, CEO, CLI India, said: “We welcome Daibiru Corporation on board as a capital partner for CIGF2. India is a core market for CLI where we have seen enormous growth driven by its increasing urbanisation, digitalisation and strong government support for investment. This partnership with Daibiru Corporation demonstrates CLI’s strengths in connecting capital partners with investment opportunities across geographies, and our commitment to contribute to India’s growing economy. Leveraging CLI’s 30 years of expertise in India, we have been able to generate attractive returns from our investments in the country, and we remain focused on creating sustainable value for our partners.”
Hardik Gesota, Head, India Private Funds, CLI, said: “There is increasing demand from multinational corporations and local companies for quality business parks in India due to the rapid growth of the IT / IT-Enabled Services sector and India’s unique strengths as a hub for Global Capability Centres. The business parks sector is also one of the most resilient asset classes in India as it provides a stable, recurring income through long-term leases with industry-leading companies.”
Daibiru’s investment in CIGF2 will see the real estate company take a 25% effective stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road). Located in the business hub of Chennai, the 2.6 million-square feet ITPC-Radial Road caters to the IT / IT-Enabled Services sector. Over time, CIGF2’s portfolio is also expected to include business parks in major metro cities such as Bangalore, Mumbai and Pune.
