CapitaLand Investment (CLI), a prominent global real estate investment manager, announced on September 4 its ambitious plan to more than double its funds under management (FUM) in India by 2028. As of June 30, 2023, CLI’s FUM in India was recorded at S$7.4 billion (approximately $5.66 billion). This expansion is part of CLI’s broader strategy to achieve S$200 billion in global FUM by the same year, according to a Reuters report.

The Indian market holds substantial potential, as emphasized by Group CEO Lee Chee Koon. He highlighted that the country is increasingly attracting demand from global corporations and institutional investors who are seeking quality real assets. To further solidify its presence, CLI is exploring opportunities in India's renewable energy sector and real estate private credit segments. This diversification move reflects the company’s intent to enhance its regional investment portfolio and capitalize on emerging market trends.

In line with these plans, CLI recently launched a dedicated fund aimed at developing business parks in India, which is anticipated to contribute an additional S$700 million to its FUM. This initiative underscores CLI's commitment to expanding its footprint in India, a market that presents promising investment opportunities and growth potential.

In a separate yet connected strategy, CLI is actively streamlining its asset portfolio in Singapore. The company has announced its decision to sell its 50% stake in ION Orchard, one of Singapore's most prestigious malls, to CapitaLand Integrated Commercial Trust (CICT). The property is valued at approximately S$1.85 billion ($1.4 billion), and the sale aligns with CLI’s broader "asset-light growth strategy." The transaction is expected to yield around S$1.1 billion after adjustments, with completion targeted for the fourth quarter of 2024.

This divestment is part of CLI's larger goal to recycle S$3.6 billion in assets this year, surpassing its initial annual target of S$3 billion. The announcement of this strategic sale led to a 4.8% surge in CLI’s shares, marking the biggest intraday gain since mid-July. This positive development comes despite earlier challenges faced by the stock due to high interest rates and exposure to the Chinese market.

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Meanwhile, CICT, Singapore's largest real estate investment trust by market capitalization, is also navigating its portfolio strategy. As reported by Bloomberg in July, CICT had been seeking to sell one of its prime office assets but faced pressure to lower the asking price. Moving forward, CICT may continue to divest properties to enhance its financial flexibility as part of its ongoing portfolio optimization strategy.

CapitaLand Investment’s strategic moves in India and Singapore reflect its dynamic approach to growth and investment in rapidly evolving markets. With an eye on doubling its FUM in India and expanding into new sectors, CLI is positioning itself as a key player in both regional and global real estate markets.

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