CapitaLand Investment launches new business park development fund in India

CapitaLand Investment Ltd. (CLI) has launched a business park development fund, CapitaLand India Growth Fund 2 (CIGF2), with a target fund size of S$525 million ($390 million) to invest in class A business parks in prime locations across gateway cities in India.

CLI has secured S$263 million ($195 million) from a global institution for a 50 percent stake in the fund’s first closing. CLI intends to maintain a sponsor stake of 20 percent in the fund, in line with its asset-light strategy to grow its funds under management while keeping strong alignment with its investors and partners. Including CLI’s equity contribution for the 20 percent stake, total equity commitment for the first closing is S$368 million ($273.4 million). This is expected to add approximately S$700 million ($520 million) to CLI’s funds under management.

CIGF2 has acquired an equity stake of 70 percent in International Tech Park Chennai, Radial Road (ITPC-Radial Road) from CLI for S$95 million ($