SINGAPORE (Oct 1): Property group CapitaLand plans to grow its assets under management (AUM) in India to $7 billion by 2024 from $3.3 billion at present.

This was announced in Bangalore, India, on Tuesday by Lee Chee Koon, Capitaland's group CEO.

To hit the target, CapitaLand will invest capital to grow development pipeline and work with capital partners to grow fund management business in the next five years.

Since the completion of CapitaLand’s combination with Ascendas-Singbridge on June 30, CapitaLand today has 17.4 million sq ft of commercial space comprising business and IT parks, industrial and logistics properties in Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai and Pune.

See: CapitaLand and Ascendas-Singbridge in $11 bil deal to create Asia’s largest diversified real estate group

Up to 80% of the portfolio comes under Ascendas India Trust (a-iTrust) and two private funds Ascendas India Growth Programme and Ascendas India Logistics Programme, with the remaining 20% under CapitaLand’s balance sheet.

CapitaLand’s business parks in India have an occupancy rate of over 95% catering to both multinationals and local companies that employ over 120,000 skilled professionals.

“With India’s growing young workforce, e-commerce, IT and IT-enabled services (ITES) sectors and demand for high-quality logistics facilities, the target is to double CapitaLand’s business and IT parks, industrial and logistics properties to about 40 million sq ft by 2024,” says the group in its Tuesday press release.

In India, CapitaLand also has a network of more than 1,500 units across 10 lodging properties owned or managed by its wholly-owned lodging business unit, The Ascott Limited. Three properties are operating in Chennai and Mumbai, and seven serviced residences are to be opened by 2022. This includes Ascott Ireo City Gurugram, the first two serviced residence in India under the luxury Ascott The Residence brand, Citadines Paras Square Gurugram, and Citadines Sri City, all slated to open in 2020.

Developments by CapitaLand which are currently underway in India include 17.9 million sq ft of business park space in Bangalore, Chennai, Gurgaon, Hyderabad and Pune when completed.

Another 7.2 million sq ft through forward purchases have been signed up and are under construction. This includes IT parks in Mumbai and Hyderabad, a seventh warehouse at Arshiya Free Trade Warehousing Zone, Panvel, near Navi Mumbai, and BlueRidge 3, an IT/ITES Special Economic Zone development in Hinjewadi Phase 1 in Pune.

CapitaLand is also building up a logistics asset portfolio in India with 4.3 million sq ft planned for development.

Year to date, shares in CapitaLand are up almost 16% to $3.56.


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