CAPITALAND Investment (CLI) has secured a S$261 million capital commitment from Mitsui OSK Lines for its South-east Asia and India private funds.
Mitsui OSK Lines, a shipping major in Japan, has committed S$130 million capital in the global asset manager’s first logistics fund in South-east Asia, CapitaLand SEA Logistics Fund (CSLF).
This represents the second close of CSLF and brings the total equity size to S$400 million, said the group on Tuesday (Nov 5).
Additionally, CLI is closing its S$525 million CapitaLand India Growth Fund 2 (CIGF2) with S$131 million capital commitment from the real estate subsidiary of Mitsui OSK Lines, Daibiru.
The capital allocations will increase CSLF’s potential funds under management (FUM) to S$1 billion and CIGF2’s FUM to more than S$1 billion.
Mitsui OSK Lines holds a 32.5 per cent stake in CSLF, which invests in and develops smart logistics infrastructure in the region.
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“The capital infusion from Mitsui OSK Lines enables CSLF to accelerate its deployment across a range of greenfield and brownfield logistics investments,” said the group.
It is also positive on the growth of the logistics market in South-east Asia amid a limited supply of prime assets in key locations.
The fund has a seed asset, Omega 1 Bang Na, which is a greenfield built-to-suit development located in a prime logistics cluster in Bangkok, Thailand. Spanning more than two million square feet, the freehold asset will be CLI’s first logistics property in the country. The first phase of construction is expected to be completed in early 2026.
As for the India fund, Daibiru will hold a 25 per cent effective stake in it, while another Japanese firm, Mitsubishi Estate, holds a 50 per cent stake.
Daibiru’s investment in CIGF2 means it will hold a stake in International Tech Park Chennai, Radial Road, which caters to tenants from the information technology sector.
CLI is positive on the rising demand from multinational corporations and local companies for quality business parks in India.
It also said it will continue to seek investment opportunities in major metro cities to expand the fund’s portfolio.
Lee Chee Koon, group chief executive of CLI, said: “Our core markets of South-east Asia 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.”
Shares of CLI ended Monday 1.1 per cent or S$0.03 higher at S$2.87.
