A real estate company starts a $2,250 billion private fund to grow its logistics business

Updated: Aug 4

To develop the nation's logistics industry, real estate company CapitaLand recently unveiled its second logistics private fund, valued at 22.5 billion rupees or 2,250 crores. The development of logistics assets in significant manufacturing and storage centers situated in six cities throughout the nation—Chennai, Pune, Bengaluru, Ahmedabad, National Capital Region, and Mumbai—will be funded by the CapitaLand India Logistics Fund II. According to a statement released by the real estate company, it would also invest in rising markets such as Jaipur, Lucknow, Coimbatore, Guwahati, and Kolkata.






Following the $400 million program's debut in 2018 to construct six logistics and industrial projects in Bangalore, Chennai, Bengaluru, Pune, and NCR, CapitaLand has deployed its second private logistics fund.


The combined potential for the development of the six projects is more than 12 million square feet. These two projects total 2.8 million square feet of leased space and are both operational. According to the Indian Logistics Industry Outlook, the country's logistics market is anticipated to develop at a compound annual growth rate of 10.5% between 2019 and 2025.


One of Asia's largest diversified real estate organizations, CapitaLand, with its headquarters in Singapore, has worked in India along the whole real estate value chain, from owning, operating, and developing properties to managing funds through the Ascendas India Trust (a-trust).


The real estate company in India has a portfolio that includes more than 20 commercial and IT parks, hotel, industrial, and logistics buildings, as well as campuses for data centers in seven different cities: Bangalore, Chennai, Bengaluru, Gurgaon, Goa, Mumbai, Hyderabad, and Pune. CapitaLand, which founded Bangalore's famed International Tech Park in 1994, has been a significant force in the growth of the nation's IT industry.


"We believe that India's logistics industry has a lot of potentials. According to Mr. Jonathan Yap, President, CapitaLand Financial, CapitaLand Group, "the sector has continued to expand especially during the pandemic fueled by the growing e-commerce and consumerism, producing significant demand for our premium warehousing and distribution facilities."


Through our private funds and our business trust, Ascendas India Trust, which presently operates seven warehouses at the Arshiya Free Trade Warehousing Zone in Navi Mumbai, we will continue to invest in India's logistics sector. By 2025, CapitaLand hopes to build out a logistics portfolio in India totaling 20 to 25 million square feet, continued Mr. Yap.


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