Logistics hub situated in Chennai's largest and most developed industrial belt.Real estate group CapitaLand launched its second logisticsprivate fund worth Rs 2,250 crore or Rs 22.5 billion, in a bid to expand the country's logistics sector.
The CapitaLand India Logistics Fund II will invest in the development of logistics assets in major manufacturing and warehousing hubs located in six cities across the country -Chennai, Pune, Bengaluru, Ahmedabad, National Capital Region, and Mumbai.
It will also invest in emerging markets such as Jaipur, Lucknow, Coimbatore, Guwahati, and Kolkata, according to a statement shared by the real estate firm.The second private fund follows the deployment of CapitaLand's first logistics private fund, the $400 million program which was launched in 2018, to develop six logistics and industrial projects in Bangalore, Chennai, Bengaluru, Pune, andNCR.
(Also Read:Ascendas India Trust To Acquire 2 Buildings At IT Park In Bengaluru For 1,441 Crore)The six projects have a total development potential of more than12 million square ft of space.
Two of these projects are operational with 2.8 million square ft of space thathas been leased.
The logistics market in the countryis expectedto expand at a compound annual growth rate of 10.5 per centbetween 2019 and 2025, according to the Indian Logistics Industry Outlook.CapitaLand - one of Asia's largest diversified real estate groups headquartered in Singapore, has worked across the full real estate value chain in India- owning,managing, and developingproperties to fund management through the Ascendas India Trust (a-iTrust).In India, the real estate grouphas a portfolio of over 20 business and IT parks, industrial, lodging, and logistics properties, anddata centre campuses inseven cities Bangalore, Chennai, Bengaluru, Gurgaon, Goa,Mumbai,Hyderabad, and Pune.
CapitaLand is a majorcontributor to the country's IT industry development, having pioneered the renowned International Tech Park Bangalore in 1994.We see significant opportunities in India's logistics sector.
The sector has continued to thrive especially during the pandemic driven by the growing e-commerce and consumerism, generating strong demand for our quality warehouse and distribution facilities,'' saidMr Jonathan Yap, President, CapitaLand Financial, CapitaLand Group.We will continue to invest in India's logistics sector through our private funds and our business trust, Ascendas India Trust which currently has seven warehouses located at the Arshiya Free Trade Warehousing Zone in Navi Mumbai.
In total, CapitaLand targets to develop a logistics portfolio of 20 to 25 million sq ft of space in India by 2025,'' added Mr Yap.