Assets Under Management AUM

Questions and Answers | We want to double the size of our portfolio over the next three to four years: Gauri Shankar Nagabhushanam, CapitaLand Investment

CapitaLand Investment has diversified its business portfolio, investing `10,000 crore in data centers, office space and logistics parks in India. Additionally, Ascendas India Trust has invested 7,300 crores in office space. Gauri Shankar Nagabhushanam, CEO, (India Business Parks), CapitaLand Investment, tells Shubhra Tandon the firm seeks to double its assets under management and the size of its portfolio in the country across all verticals by 2026. Excerpts.

How are CapitaLand’s activities in India at the moment?

As of today, in our Indian portfolio, we have between 3.7 and 3.8 billion Singapore dollars; square foot requirements will be 21-22 million square feet in business parks, 5-6 million square feet in warehousing and logistics industrial parks, and we are about to start the first not in the data center business.

What are the expansion plans for this portfolio?

We want to double the size of our portfolio in the next three to four years. In terms of assets under management (AUM), we are targeting an expansion of S$7-8 billion, and this will also impact square footage. From around 22 million square feet in the business parks, we should be closer to 40 million square feet, and on the logistics side, we should also be able to reach 15-16 million square feet of office space. construction and rental. When it comes to data centers, we should also start with Mumbai, Bengaluru and Hyderabad chapters in this portfolio, with Chennai following shortly after.

What is your strategy for these extensions?

We currently have an active pipeline of assets under development, so as we speak we have 8 million square feet of development on the business park side, and already have land to continue to develop this business. On the storage side, we have about 550 to 600 acres of land. About a third is roughly developed, and the rest will be developed over the next three years, bringing an additional 8-9 million square feet. We will also acquire assets in the inorganic growth market in terms of forward purchase through the AI ​​Trust (Ascendas India Trust) platform and some private equity funds that we will set up over the next couple of years. Between organic and inorganic growth, we should meet these timelines and acreage and these AUMs over the next three years.

What is the data center expansion plan?

If you look at the business, the space occupancy is low because each data center would be 250,000 to 350,000 square feet, so in terms of area it’s small, but in terms of capex, it will be great. Thus, each project alone would cost between 300 and 400 million dollars. So four sites together will be $2 billion from there alone, but it will be consumed over a period of time. So I would say $1 billion in terms of AUM over the next three or four years would come from data centers and the other $3 billion like $0.5 billion from logistics, industry and warehousing, and $2 billion to $2.5 billion from business parks.

Are you creating any joint ventures for these expansions?

We have a mixed portfolio. We currently have our own land, then in our existing business parks we have spaces that we continue to develop. In our Bengaluru business park, we have 3 million square feet, which is currently in progress. Similarly, a few million square feet will be developed in our Hyderabad park, a few million, if not more, in our Gurugram park and an additional 1.3 to 1.4 million square feet are under development in our Pune. Additionally, we are in forward purchase agreements where we agree a certain economy with our landowners/developers that you build these buildings to our specification and subject to them being leased over a certain period of time, we will acquire them for a certain value.

What will be the geographic expansion mix with these projects?

We are going to expand the business parks in the cities where we have a presence – Chennai, Bengaluru, Hyderabad, Pune, Mumbai and Gurugram – because we continue to believe that there will be a lot of expansion in these metropolitan and level cities 1. Additionally, we would consider acquiring properties largely in Tier 2 cities. Logistics expansion will also be in these cities, but we will also look at Kolkata and Tier 2 cities like Jaipur, Lucknow , Ludhiana, Coimbatore, Guwahati. Data centers will be in Mumbai, Hyderabad, Bangalore and Chennai.