Key Takeaways
- • CapitaLand Investment closed its first tranche at S$368 million ($273.1 million) for CapitaLand India Growth Fund 2 (CIGF2), targeting a final raise of S$525 million to deploy across grade A business parks in India's major tech hubs.
- • CIGF2 seeded with 70 percent stake in International Tech Park Chennai, Radial Road—a 2.6 million square foot grade A office development completing in 2025—positioning the fund to capitalize on India's robust return-to-office momentum and economic expansion.
- • Fund capitalized on accelerating institutional interest in India's commercial real estate sector, with CLI's private equity real estate chief attributing momentum to six to nine months of elevated global investor attention driven by India's economic performance and workplace recovery trends.
- • First closing backed by an unnamed global institution with existing CapitaLand relationship; fund represents CLI's second dedicated India business park vehicle, following predecessor fund backed by Singapore's sovereign wealth fund GIC through merged Ascendas entity.
Summary
CapitaLand Investment announced the first closing of CapitaLand India Growth Fund 2 (CIGF2) on August 10, 2023, securing S$368 million ($273.1 million) toward a target final raise of S$525 million. The fund targets grade A business park investments across Chennai, Bangalore, Hyderabad, and Pune, marking CLI's second dedicated India-focused business park strategy as the Singapore-listed property company expands its private funds platform in the world's largest economy.
The inaugural close was anchored by S$263 million from an unnamed global institutional investor with existing CLI relationships. According to Simon Treacy, chief executive officer of CLI's private equity real estate division, the fund has generated "very strong interest from investors around the world" over the preceding six to nine months. Treacy attributed this momentum to two converging trends: heightened global investor focus on India's economic trajectory and the accelerating return-to-work cycle driving demand for premium office space.
CIGF2 is seeded with a 70 percent interest in International Tech Park Chennai, Radial Road (ITPC-Radial Road), a flagship development in Chennai delivering 2.6 million square feet of grade A office space upon completion in 2025. This anchor asset positions the fund to benefit from strong pre-leasing activity and India's emerging status as a destination for multinational technology operations and business process outsourcing.
The fund represents continuity with CLI's India strategy. Its predecessor, an Ascendas-managed India business park fund backed by Singapore's sovereign wealth fund GIC, has since been integrated into CapitaLand Group following the Ascendas merger. CIGF2 builds on the demonstrated demand for institutional-quality commercial real estate in India's tier-one markets while leveraging CLI's established development and asset management capabilities in the country.
The inaugural close was anchored by S$263 million from an unnamed global institutional investor with existing CLI relationships. According to Simon Treacy, chief executive officer of CLI's private equity real estate division, the fund has generated "very strong interest from investors around the world" over the preceding six to nine months. Treacy attributed this momentum to two converging trends: heightened global investor focus on India's economic trajectory and the accelerating return-to-work cycle driving demand for premium office space.
CIGF2 is seeded with a 70 percent interest in International Tech Park Chennai, Radial Road (ITPC-Radial Road), a flagship development in Chennai delivering 2.6 million square feet of grade A office space upon completion in 2025. This anchor asset positions the fund to benefit from strong pre-leasing activity and India's emerging status as a destination for multinational technology operations and business process outsourcing.
The fund represents continuity with CLI's India strategy. Its predecessor, an Ascendas-managed India business park fund backed by Singapore's sovereign wealth fund GIC, has since been integrated into CapitaLand Group following the Ascendas merger. CIGF2 builds on the demonstrated demand for institutional-quality commercial real estate in India's tier-one markets while leveraging CLI's established development and asset management capabilities in the country.
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