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CapitaLand Investment Limited (CLI) is set to significantly expand its presence in Chennai, India, with the signing of three MoUs during the Tamil Nadu Global Investors Meet (GIM) 2024. These agreements encompass business parks, data centers, and logistics, with an anticipated investment exceeding USD 750 million (approximately 4500 crore INR) over the next five years. CLI's diverse real estate asset classes cover retail, office, lodging, business parks, industrial, logistics, and data centers. The company, headquartered in Singapore, holds a robust portfolio in India, managing over 27 assets across seven cities. The recent focus on Chennai reflects CLI's commitment to further investment and development in the region.
CLI's extensive portfolio in Chennai comprises business parks, industrial facilities, logistics and warehouse facilities, co-working spaces, serviced residences, and an upcoming data center. Notable projects include the International Tech Park Chennai (ITPC) at Taramani and Radial Road, CyberVale, and various other facilities.
The company has invested approximately USD 800 million (around 5000 crores) in Chennai to date and plans to inject over USD 750 million (about 4500 crore INR) in the next five years, emphasizing a strategic emphasis on IT parks, logistics, and data centers. This substantial commitment underscores CLI's confidence in the market's growth potential across multiple real estate segments.
CapitaLand Investment Limited has introduced the CapitaLand India Growth Fund 2 (CIGF2), a business park development fund with a target size of USD 525 million. This fund aims to invest in Grade A business parks in prime locations across major Indian cities. CLI plans to retain a 20% sponsor stake in the fund, aligning with its asset-light strategy while ensuring strong collaboration with investors and partners. CIGF2's initial investment includes a 70% equity stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road), acquired from CLI as its seed asset for USD 94.9 million (INR 5.9 billion).
Phase 1 of ITPC-Radial Road, certified as India's first Net Zero business park by the Indian Green Building Council, has started operations. This innovative development spans 5 million square feet and is strategically located along Chennai's booming IT corridors. The business park, boasting Grade A office blocks, aims to accommodate over 50,000 IT service professionals upon completion. CLI is actively progressing with the development of Phase 2, scheduled to be operational by the second quarter of 2024.
CapitaLand India Trust (CLINT), a subsidiary of CLI, acquired a freehold site in Ambattur, Chennai, for INR 832.8 million (approximately USD 14.1 million). This strategic acquisition aims to develop CLINT's third data center in India. The estimated total investment for site acquisition and phased development is around INR 19.4 billion (approximately USD 328.8 million), with the data center targeting a power capacity of 55 megawatts. Scheduled for completion by the end of 2025, the facility aims to cater to global technology giants, cloud service providers, and large domestic enterprise clients.
Additionally, CLINT completed the acquisition of Casa Grande – Phase 2, comprising two fully leased industrial facilities at Mahindra World City, Chennai. This transaction represents CLINT's second forward purchase agreement with the Casa Grande Group. The first forward purchase transaction of a fully leased industrial facility (Casa Grande – Phase 1) was completed on 27 May 2022.
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