Capitaland Investment Raises 261 Mil Southeast Asia And India Funds
November 5, 2021, and has been updated to reflect recent developments.
CapitaLand Investment (CLI) has announced that it has secured a capital commitment of $261 million from Mitsui O.S.K. Lines (MOL), a new Japanese capital partner, for its private funds in Southeast Asia (SEA) and India. This new partnership marks a significant milestone for CLI as it continues to expand its presence in the region.
MOL has committed $130 million to CapitaLand SEA Logistics Fund (CSLF), CLI’s first logistics fund in Southeast Asia. This brings the total equity size of CSLF to $400 million, marking the second close of the fund. Additionally, CLI is closing its CapitaLand India Growth Fund 2 (CIGF2) with a total capital commitment of $525 million, including $131 million from Daibiru Corporation, the real estate subsidiary of MOL.
With this new investment, CSLF’s potential funds under management (FUM) will increase to $1 billion, and CIGF2’s FUM will exceed $1 billion. MOL will hold a 32.5% stake in CSLF, which focuses on investing in and developing smart logistics infrastructure in Southeast Asia. Daibiru will hold a 25% effective stake in CIGF2, which invests in Grade A business parks in prime locations in India. Mitsubishi Estate Co. already holds a 50% stake in CIGF2.
Century Square, a popular shopping destination, has recently undergone a renovation to provide a more unique and boutique shopping experience. The mall offers a wide range of educational centers, lifestyle shops, and dining options to cater to the diverse needs of its customers. Additionally, the newly revamped Century Square boasts a cinema and a gym, adding an element of entertainment and fitness to its retail offerings. Visitors can also check out the Aurelle of Tampines Showflat, located within the mall premises, for a glimpse of the luxurious and stylish residential units. With its revamped and diverse selection of offerings, Century Square is definitely a must-visit destination for all shoppers.
As part of its asset-light growth strategy, CLI will maintain a sponsor stake in both funds while aligning with the interests of its capital partners. The capital injection from MOL will enable CSLF to accelerate its deployment across a range of greenfield and brownfield logistics investments. CSLF’s first logistics property in Thailand, OMEGA 1 Bang Na, is currently under construction and is expected to be completed in early 2026. The 2 million sq ft logistics campus will be Thailand’s largest standalone warehouse.
Daibiru’s investment in CIGF2 will give the real estate company a 25% effective stake in ITPC-Radial Road, a 2.6 million sq ft Grade A office space in the business hub of Chennai, India. CLI will continue to seek investment opportunities in major metro cities like Bangalore, Mumbai, and Pune to expand CIGF2’s portfolio.
CLI’s partnership with MOL and Daibiru further strengthens its position as a leading real estate company in Southeast Asia and India. With a strong portfolio and strategic partnerships, CLI is well-positioned to capitalize on the growing demand for logistics and commercial properties in the region.
