CapitaLand Investment (CLI) has achieved a significant milestone in its India-focused real estate strategy. The CapitaLand India Growth Fund 2 (CIGF2) now exceeds SGD 1 billion in funds under management (FUM). This growth comes after a capital infusion of SGD 131 million from Japan’s Daibiru Corporation, marking increased international interest in India’s burgeoning commercial real estate market.

Boosting Grade A Business Parks

Daibiru’s investment translates to a 25% stake in the SGD 525 million CIGF2 fund, which is dedicated to acquiring and developing Grade A business parks in India’s major gateway cities. These high-quality office spaces, tailored for multinational corporations, reflect the growing demand for state-of-the-art facilities in urban hubs.

The strategic importance of this investment is underscored by Daibiru’s 25% stake in International Tech Park Chennai, Radial Road (ITPC-Radial Road), a flagship property in CLI’s portfolio. This development highlights the significant appeal of Chennai’s thriving IT and business services sectors for global and local companies alike.

Global Players Backing India’s Real Estate

Another prominent investor, Japan’s Mitsubishi Estate Co., holds a 50% stake in CIGF2, further strengthening the fund’s position. CLI, which retains a sponsor stake, benefits from the fund’s success while adhering to its asset-light growth strategy. This approach allows CLI to scale its portfolio sustainably by leveraging external capital rather than its own.

“India’s business parks are increasingly sought after by global companies seeking modern, well-equipped spaces,” CLI emphasised. The collaboration with Mitsubishi Estate and Daibiru reflects the confidence of global investors and reinforces CLI’s role as a key player in India’s commercial real estate market.

Strategic Investment in High-demand Markets

The partnership also aligns with India’s rapid urban and economic development, which has fueled demand for premium office spaces. Properties like ITPC-Radial Road exemplify the assets attracting international investors, combining cutting-edge infrastructure with strategic locations.

By acquiring and managing such high-calibre assets, CLI aims to cater to the evolving needs of multinational corporations and large enterprises. The company’s ability to attract global tenants underscores its competitive edge in the Indian market.

Driving Growth Through Collaboration

This latest capital commitment strengthens CLI’s position in India while fostering growth in the country’s commercial real estate sector. The collaboration with Daibiru and Mitsubishi Estate exemplifies the trend of global capital flowing into India’s business parks segment, a lucrative area driven by the country’s booming urbanisation and economic potential.

With its asset-light model and strategic partnerships, CLI is poised to continue expanding its footprint in India’s thriving real estate market, meeting the increasing demand for premium office spaces and delivering long-term value for its stakeholders.