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CapitaLand Investment Limited (CLI), a leading 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 S$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. CLI is also closing its S$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 S$1 billion1 and CIGF2’s FUM to more than S$1 billion2.
MOL holds a 32.5%3 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.
Mr Lee Chee Koon, Group CEO, CLI, said: “We welcome MOL onboard as a key capital partner. Having MOL place their trust in CLI is a testament to our strengths in connecting capital partners with investment opportunities across geographies and asset classes. 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.”
The capital infusion from MOL enables CSLF to accelerate its deployment across a range of greenfield and brownfield logistics investments. The logistics market in SEA continues to demonstrate strong fundamentals amid a limited supply of prime assets in key locations. CSLF has a seed asset, OMEGA 1 Bang Na, which is a greenfield built-to-suit development strategically located in a prime logistics cluster within the Greater Bangkok Metropolitan area in Thailand. This freehold logistics campus comprises two buildings with ambient and cold storage capabilities as well as an automated storage and retrieval system. With a gross floor area of over 2 million square feet, it will be Thailand’s largest standalone warehouse when completed. OMEGA 1 Bang Na also marks CLI’s first logistics property in Thailand. Phase 1 of the construction is expected to be completed in early 2026.
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. It offers two blocks of Grade A office space, state-of-the-art infrastructure, and is well-connected with all modes of transport including the upcoming metro line. 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.
OMEGA 1 Bang Na comprises two buildings with ambient and cold storage capabilities as well as an automated storage and retrieval system. With a gross floor area of over 2 million square feet, it will be Thailand’s largest standalone warehouse when completed. Phase 1 of the construction is expected to be completed in early 2026.
Certified as India’s first Net Zero business park for energy efficiency, water conservation and waste management, International Tech Park Chennai – Radial Road will offer two Grade A office blocks in the business hub of Chennai. Phase 1 was completed in August 2023, while Phase 2 is expected to complete in December 2024.
CLI in SEA
CLI has more than 370 properties across seven countries with a total FUM of S$41 billion4 in SEA. CLI’s portfolio in SEA comprises retail, office, lodging, industrial, logistics, business parks, wellness, self-storage and data centres. 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 in India
Since CLI pioneered business parks in India 30 years ago, it has built a well-diversified 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.
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.
Notes:
1. This includes total equity commitment of S$270 million from CSLF's first close in February 2023.
2. This includes total equity commitment of S$368 million from CIGF2's first close in August 2023.
3. As at 1 November 2024.
4. As at 30 June 2024.
Release ID: 89145441
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