The Southeast Asia shed fund is seeded with Omega 1 Bang Na near Bangkok (Image: CapitaLand Investment)
CapitaLand Investment on Wednesday posted a 6 percent year-on-year rise in fee income for the first nine months of 2024, following the day-earlier announcement of S$261 million ($195.5 million) in fresh capital for the real estate fund manager’s Southeast Asia and India private vehicles.
Revenue related to fee income reached S$845 million in the year to date, up from S$799 million in the comparable period of 2023, Singapore-based CapitaLand Investment said in a business update. Real estate investment revenue eased 2 percent year-on-year to S$1.42 billion as the company continued to shift towards a greater contribution from fee income.
On Tuesday the firm introduced a new capital partner from Japan, shipping major Mitsui OSK Lines, which has committed S$130 million and S$131 million respectively to CapitaLand SEA Logistics Fund and CapitaLand India Growth Fund 2, making the latter investment via property unit Daibiru Corporation. The infusion will boost CSLF’s potential funds under management to S$1 billion and CIGF2’s FUM to more than S$1 billion.
“Our core markets of SEA and India have tremendous growth potential as rising urbanisation, supply chain rationalisation, and digitalisation continue to drive demand for assets such as logistics and business parks,” said Lee Chee Koon, CEO of SGX-listed CapitaLand Investment, which is controlled by state holding firm Temasek.
Powering Projects
CapitaLand Investment and Taiwan-based Ally Logistic Property joined forces with Thai developer Pruksa Holding to launch CSLF in 2022 with a target size of S$1 billion. The Southeast Asia warehouse fund is seeded with Omega 1 Bang Na, a greenfield built-to-suit logistics campus near Bangkok whose first phase is due for completion in 2026.
CapitaLand Investment CEO Lee Chee Koon
The 2 million square foot (185,806 square metre) project is expected to be Thailand’s largest standalone warehouse when finished. Mitsui OSK Lines holds a 32.5 percent stake in CSLF, which plans to accelerate its deployment across a range of greenfield and brownfield logistics investments, CapitaLand Investment said.
Daibiru’s investment in CIGF2 will see the real estate unit take a 25 percent effective stake in International Tech Park Chennai, Radial Road, a 2.6 million square foot campus catering to IT firms. CapitaLand Investment continues to maintain a sponsor stake in both funds as part of its asset-light growth strategy, according to the firm.
The latest capital commitments mark the second closing of CSLF, bringing its total equity size to S$400 million, and the final closing of the S$525 million CIGF2.
Private Strategies Active
CapitaLand Investment’s private funds have committed more than S$2.1 billion in the year to date to a range of industrial, hospitality and office assets.
Those investments include the Core Logistics Japan Fund’s acquisitions of the Sagamihara Minami Hashimoto Logistics Centre in Greater Tokyo and the Ibaraki Saito Logistics Centre in Osaka, two operational properties with a combined gross floor area of 49,300 square metres (530,661 square feet).
The hospitality-focused CapitaLand Ascott Residence Asia Fund II acquired Lyf Shibuya Tokyo from the sponsor and a 50 percent interest in Lyf Bugis Singapore, with CapitaLand Wellness Fund buying the remaining half-stake.
The Korea Office Value-Add Fund picked up Golden Tower in Seoul’s Gangnam district from South Korea’s NPS for KRW 440.8 billion ($330 million). The strategy recently closed with a total equity commitment of KRW 200 billion.
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