CapitaLand plans to more than double India assets under management to S$7B by 2024

An artist’s impression of MTB 5, a 700,000 square-foot multi-tenanted building owned by Ascendas India Trust located in International Tech Park Bangalore. The building is expected to be completed in the second half of 2020. Credit: CapitaLandAn artist’s impression of MTB 5, a 700,000 square-foot multi-tenanted building owned by Ascendas India Trust located in International Tech Park Bangalore. The building is expected to be completed in the second half of 2020. Credit: CapitaLand

CapitaLand plans to increase its assets under management in India to S$7 billion, or around 362 billion Indian rupees by 2024, more than double the current level of S$3.3 billion, or around 170 billion rupees, the property developer said in a filing to SGX Tuesday.

Lee Chee Koon, CEO of CapitaLand Group, announced the plan at a press conference in Bangalore Tuesday.

CapitaLand’s integration of Ascendas-Singbridge portfolio since July 2019 has strengthened our competitive edge globally and in India, one of our strategic markets for growth,” Lee said in the statement.

“We see strong potential to leverage new economy trends such as the growth in e-commerce, urbanisation and knowledge economies to expand in the business park and logistics sectors, which are core sectors for the India economy,” Lee added.

CapitaLand said it currently has 17.4 million square feet of commercial space across business and IT parks, industrial and logistics properties in Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai and Pune. The business parks in India have an occupancy rate of more than 95 percent and cater to both multinational corporations and local companies, it said.

The property developer said it is targeting doubling its business and IT parks, industrial and logistics  properties to around 40 million square feet by 2024.

Around 80 percent of that segment of the India portfolio is under Ascendas India Trust and two private funds, Ascendas India Growth Programme (AIGP) and Ascendas India Logistics Programme, CapitaLand said.

AIGP is a S$300 million vehicle launched with GIC in 2013 targeting greenfield and brownfield office developments and their complementary uses, such as residential, retail and hospitality, the filing said. Ascendas India Logistics Programme is a S$400 million vehicle launched in 2018 with Temasek Holdings, it added. GIC and Temasek Holdings are Singapore state-owned investment companies.

The remaining 20 percent of the India portfolio is on CapitaLand’s balance sheet, the filing said.

For the hospitality segment, CapitaLand said it has more than 1,500 units across 10 lodging properties owned or managed by its lodging unit, The Ascott; three properties are operating in Chennai and Mumbai and seven serviced residences are set to be opened by 2022, it added.

“For our lodging business under Ascott, we will continue to build on the recurring fee income by seeking opportunities to expand primarily through management contracts, franchises and leases in key cities with strong demand from expatriates and travelers,” Lee said.

Jonathan Yap, president of CapitaLand Financial and head of the India business, said Ascendas India Trust and private funds would remain integral to the expansion.

“CapitaLand provides capital partners access to a variety of valuable investment opportunities across sectors. We use our operational expertise to optimize the value of underlying assets and produce desirable risk-adjusted returns for our capital partners,” Yap said in the statement. “We are also looking to grow our funds business in India to expand and diversify our portfolio.”

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