CapitaLand Investment India Commits ₹1,300 Crore for 2.6 Million Sq Ft Development in FY26 with Focus on Logistics, Data Centres, and Office Redevelopment

CapitaLand Investment India, the Indian subsidiary of Singapore-based real estate investment giant CapitaLand, has announced plans to invest ₹1,300 crore for developing 2.6 million square feet of commercial real estate in FY26. The company has outlined a strategic focus on expanding its portfolio in logistics, data centres, and office redevelopment projects while exploring Infrastructure Investment Trust (InvIT) structures to unlock value from its asset-heavy verticals.

Strategic Development Focus for FY26

The Singapore-based real estate major has charted out a comprehensive development strategy across multiple asset classes for the upcoming fiscal year. The company's portfolio expansion reflects a carefully calibrated approach to India's evolving commercial real estate landscape.

In the logistics and industrial sector, CapitaLand Investment India currently operates 10 million square feet of facilities, with an additional 14 million square feet under various stages of construction. This segment represents the major share of the company's development activity, positioning it strategically to capitalize on India's e-commerce and manufacturing growth.

The company has been actively expanding its data centre footprint across multiple cities. Its recently operational facility in Navi Mumbai boasts 33.7 megawatts of IT load capacity and has been fully leased to a United States-based hyperscaler. An additional 37 megawatts of capacity is currently under construction at the same location, while facilities in Hyderabad and Chennai with capacities ranging between 27 to 36 megawatts are also progressing. Bengaluru's thriving office space market has also been identified for data centre development.

For office assets, the 2.6 million square feet of development includes a significant redevelopment project in Hyderabad, where the company plans to scale its tech park from 1.4 million square feet to 5 million square feet, demonstrating confidence in Hyderabad's real estate market potential.

Data Centre Expansion Across Key Markets

The company's data centre strategy demonstrates a phased approach to capturing India's digital infrastructure opportunity. The operational Navi Mumbai facility with 33.7 megawatts of IT load represents a significant milestone, with the entire capacity secured by a prominent American technology hyperscaler, reflecting strong institutional demand for quality digital infrastructure.

The next phase of development in Navi Mumbai's expanding connectivity hub includes an additional 37 megawatts currently under construction. Simultaneously, facilities in Hyderabad and Chennai with approximately 27 to 36 megawatts are progressing through construction phases. The company has also identified opportunities in Bengaluru's dynamic real estate market for future data centre developments.

Investment Strategy and Capital Recycling

CapitaLand Investment India has earmarked ₹1,300 crore specifically for new development projects in FY26, reflecting measured growth aligned with market opportunities. The company has adopted a sophisticated capital recycling strategy, divesting older office assets to fund acquisitions and developments in higher-growth segments.

Properties such as CyberPearl in Hyderabad and CyberVale in Chennai are being strategically divested as part of this portfolio optimization exercise. The proceeds from these transactions are being systematically redeployed into newer assets and emerging growth platforms, particularly in the logistics and data centre segments where the company sees stronger long-term value creation potential.

Capital Markets Strategy and REIT Outlook

The company is actively exploring InvIT listing opportunities for its logistics and data centre portfolios as a means to unlock value and provide liquidity to investors. However, the firm has indicated it will maintain its office portfolio within the Singapore-listed CapitaLand REIT structure to avoid fragmentation and maintain institutional-grade portfolio management.

With India currently hosting over 50 InvITs and five Real Estate Investment Trusts (REITs), CapitaLand Investment India believes the market has capacity for an additional three to five major office REITs, provided they achieve minimum scale of USD 1 billion at launch. This assessment reflects the company's understanding of investor appetite and market dynamics in India's commercial real estate investment landscape.

Market Performance and Occupancy Rates

The company's existing portfolio demonstrates strong operational performance across asset classes. Logistics properties maintain occupancy rates in the mid-90 percent range, reflecting robust demand from e-commerce, third-party logistics providers, and manufacturing companies seeking quality warehousing facilities.

Office assets are operating at nearly 90 percent occupancy, benefiting from disciplined supply management and rental growth in prime micro-markets. The company notes that office REIT performance in India has shown improvement due to limited new supply in established locations and steady absorption by technology companies, multinational corporations, and Global Capability Centres driving REIT sector growth.

Long-Term Positioning in Indian Commercial Real Estate

CapitaLand Investment India's strategic approach demonstrates a commitment to India's commercial real estate sector through targeted investments in scalable verticals aligned with structural growth trends. The focus on logistics infrastructure supports the country's manufacturing and e-commerce expansion, while data centre investments position the company to benefit from India's digital transformation and cloud adoption.

The office redevelopment strategy, particularly in technology hubs like Hyderabad, reflects confidence in sustained demand from India's services sector. By combining capital recycling, selective InvIT monetization, and disciplined asset management maintaining high occupancy rates, the company has established itself as a significant institutional player in India's expanding office real estate market.

The measured approach to REIT expansion, preferring scale and quality over rapid proliferation, suggests a long-term perspective on building durable investment platforms. This strategy aligns with India's infrastructure and digital growth trajectory, positioning CapitaLand Investment India to capture opportunities across multiple commercial real estate segments while maintaining operational excellence and attractive returns for investors.