CapitaLand India Trust (CLINT) has entered into definitive agreements to sell a 20.2% stake in the existing three data centre properties that are under development to CapitaLand India Data Centre Fund (CIDCF) for an estimated consideration of ₹702 crore, equivalent to about S$99.73 million. These sales are a step towards the overall capital recycling plan of CLINT, which will allow the company to create balance sheet flexibility to pursue future growth opportunities in the burgeoning digital infrastructure market in India.
After the divestment has been completed, CLINT shall remain in possession of a majority stake in the data centre platform, giving them an active role in shaping the future of the underlying assets. The sale of the majority stake makes it possible for the trust to realize financial gains in the early stages of the development life cycle of the projects, yet at the same time take advantage of their full potential as they are completed.
According to the company, the proceeds from the transaction will be redeployed towards CLINT’s development pipeline and higher-yielding investment opportunities across key Indian cities. The move aligns with the trust’s strategy of recycling capital from maturing or developing assets into new growth avenues, particularly in sectors with strong structural demand.
Commenting on the transaction, Gauri Shankar Nagabhushanam, Chief Executive Officer of CapitaLand India Trust Management, the trustee-manager of CLINT, said that the divestment strengthens the trust’s ability to pursue accretive investments. “Post-transaction, CLINT remains well-positioned to pursue accretive and higher-yielding investment growth opportunities in key Indian cities to create value for our unitholders,” he said.
The acquiring entity, CapitaLand India Data Centre Fund, is a development-focused private fund managed by CapitaLand Investment (CLI). The fund recently completed its first close, raising approximately S$150 million in equity. The fund is anchored by a global institutional investor, alongside a general partner commitment from CLI. CIDCF is targeting a final close of around S$300 million, reflecting strong investor appetite for India’s data centre sector.
Andrew Lim, Group Chief Operating Officer of CapitaLand Investment, pointed out the potential for growth of the Indian data center industry. “The Indian data center capacity will double by 2027. With three flagship assets currently in the development pipeline and power contractual agreements secured, CIDCF provides an attractive opportunity for private capital to tap into the growth engine,” he explained.
Data centres in the Indian market have now been identified as one of the most attractive areas of investment by institutional investors due to advancements brought about by technology adoption, the rise of cloud usage, and the need for localization of data, and the growing presence of tech giants across the globe. Data centres have experienced increased interest from foreign funds looking to invest in infrastructure-backed real estate properties yielding long-term and stable returns.
The transaction underscores CapitaLand’s continued focus on scaling its data centre platform in India through a combination of listed and private capital vehicles. By leveraging both CLINT and CIDCF, the group aims to optimise capital allocation while accelerating the development of high-quality digital infrastructure assets.
The divestment is expected to be completed following the first close of CIDCF and is subject to customary conditions. Once finalised, the transaction will further strengthen CapitaLand’s position as a leading institutional investor in India’s data centre and alternative real estate segments.
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