“In India, we’ve had a presence, but we actually haven’t really focused that much so far,” Nagabhushanam, who was in the country this week, told Mint. “I think the time for India has come now, and it has become core for CapitaLand. That’s why you’ll see a lot more traction.”
Overall investment activity in India’s real estate sector has moderated in the first half of 2025, amid global economic uncertainty and political headwinds. However, CapitaLand India Trust (CLINT) plans to significantly expand its footprint in the country.
Projects across key cities
CLINT’s upcoming growth pipeline includes seven projects across Bengaluru, Hyderabad, and Chennai, which will together add approximately 7.26 million sq ft of floor area to its portfolio. Two are coming up in Hyderabad, three in Bengaluru, and one in Chennai.
Of the seven projects, six are IT parks, and the seventh in Chennai is an industrial asset, a large-scale development, which could include manufacturing and logistics spaces.
There’s clear momentum building among global investors towards India-focused Reits and real estate assets, said Shobhit Agarwal, managing director and chief executive of Anarock Capital. “India is still the fastest-growing large economy in the world,” he said, and the recent regulatory clarity is helping boost investor confidence.
While geopolitical uncertainties have tempered some inflows, long-term interest remains “intact and strong” as investors look to diversify beyond saturated Asia-Pacific markets, said Agarwal.
Investments and asset strategy
The total expected investment for CLINT’s projects is around ₹6,490 crore (S$984 million), with ₹3,780 crore (S$572 million) of committed capital still to be deployed as of 30 June. The developments span across office parks, logistics facilities, and data centre-aligned assets.
Agarwal attributed the surge of capital in IT parks and logistics to India’s deepening digital and consumption economy. “In offices, demand is driven by the expansion of GCCs (global capability centres) and co-working operators,” he said.
CLINT is also looking to partially divest its data centre development projects, with plans to sell a 33% stake. The idea, according to Nagabhushanam, is to establish credible valuations for this relatively new asset class in India and bring global institutions on board to validate the assets.
Future plans
Nagabhushanam said the partial divestment strategy also aligns with CLINT’s broader approach to reduce exposure to development-stage assets and keep capital free for returns-focused deployment. “Instead of putting in 100 dollars, I can sell 33% and free up capital,” he said.
“I have a high NAV (net asset value), but the market in Singapore is still skeptical, unsure if it holds value,” he said. “So I’ll bring in large global institutions. They’ll do their due diligence, and once they invest, the market will understand there is value.”
The current valuation of the four data centres under development stood at ₹3,505.6 crore as of 31 December 2024.
Data centres are also attracting foreign interest due to low data costs, cloud adoption, and regulatory pushes for data localization. “Global investors see structural growth and improving asset quality as a compelling long-term play,” Agarwal said.
CapitaLand Group, CLINT’s parent firm, is a Singapore-based real estate investment firm with S$117 billion in funds under management. It manages six listed Reits globally, including
CapitaLand India Trust, CapitaLand Integrated Commercial Trust, CapitaLand Ascendas Reit, CapitaLand Ascott Trust, CapitaLand China Trust, and CapitaLand Malaysia Trust.
While CLINT may consider listing another Reit in India in the future as the country’s capital markets are opening up, Nagabhushanam clarified that there are no such plans currently.
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