Singapore-based CapitaLand Investment (CLI) will be investing around $1.15 billion in setting up data centres in India to reach a capacity of 244 MW over three-four years, which is part of its larger plan to double its overall investments in India by 2028, the top management said.
CLI managed funds of $5.7 billion in India, at the end of June and it is looking to double it up over the next four years, by investing in business and IT parks, logistics and warehouses, data centres and lodging, while it is looking to diversify into renewables and real estate private credit. Its growth will be driven by CapitaLand India Trust, a property trust listed in Singapore.
While capital allocation for the various assets would be a factor of the returns profile, a huge chunk of it will go into data centres, which requires considerable investments. It entered the data centre business in India 2021, and is developing four centres in Mumbai, Chennai, Hyderabad, and Bengaluru. Its first centres in Navi Mumbai and Hyderabad will begin operations next year. “We can scale up this business even further,” said Sanjeev Dasgupta, CEO, CapitaLand Investment, India. It will also float a data centre fund and raise funding from third party investors.
New Private Funds
In the IT parks segment, the asset manager has developed over 23 million square feet, across 14 such sites. It has a land bank of 16 msf, where it will be setting up premium office spaces. It will raise third party capital through new private funds for greenfield developments, while it is also looking at joint venture opportunities with capital partners to expand in India.
CLI has a portfolio of around 10 msf in logistics and 14 msf of additional space coming up, while it is also scouting for acquisition opportunities to accelerate growth in the segment. It currently has 16 logistics and industrial assets in India.
The asset manager is also keenly watching the real estate investment trusts and Infrastructure investment trusts space in India, as a potential asset class where it could play a significant role, having been a pioneer in the launch and development of REITs in Singapore.