Singapore-Based CapitaLand Aims to Double India FUM, Eyes REIT Launch and Credit Platform by 2027

CapitaLand Investment, the Singapore-headquartered asset management giant, has reportedly announced aggressive expansion plans for its India portfolio as part of the company's broader global growth strategy. According to industry sources, the company is planning to double its funds under management (FUM) in the country while actively exploring the launch of a real estate investment trust (REIT) and a credit platform in the coming years.

The asset manager is reportedly undergoing a leadership transition in India following the departure of its former India CEO. Company officials have clarified that the change does not represent a restructuring move but is part of an ongoing strategic shift. The leadership position is expected to be backfilled soon, as India continues to be positioned as one of the group's most critical growth markets globally. This development comes at a time when foreign investors are aggressively expanding their Indian real estate portfolios.

Expansion Driven by Core Asset Classes

CapitaLand reportedly holds over ₹61,200 crore (S$9 billion) in assets under management in India, spread across approximately 39.1 million sq ft of operational space in business parks and logistics, along with 244 MW of data centres currently under development. The group's India strategy is said to be driven by three primary verticals, namely business parks, logistics, and data centres, with additional focus areas including retail and serviced residences through associated brands.

Industry observers note that the company's expansion model is likely to include a mix of development, forward-purchase deals, and select acquisitions. In the business parks segment, forward-purchase transactions are reportedly expected to continue as a preferred strategy to enable efficient capital deployment. According to market analysts, this aligns with the broader trend of India's office real estate sector witnessing robust growth driven by technology and services expansion.

For logistics, development is reportedly expected to dominate due to the scarcity of available assets. Reports suggest that the warehousing and logistics sector has grown substantially with significant investment inflows. In the data centre segment, development remains the only feasible approach, according to company sources. The data centre vertical is witnessing massive expansion across India, with major players joining forces for multi-billion dollar data centre projects.

While acquisitions remain on the table, CapitaLand has also reportedly confirmed that selective divestments would be part of the strategy. Assets that are considered redevelopment-heavy or where further value addition is not possible may be monetised in the interest of capital recycling, according to industry sources.

India REIT Under Active Evaluation

The company is reportedly evaluating the potential launch of an India-based REIT, building on its global experience in real estate investment trusts. Industry experts note that India is the fastest-growing REIT market in Asia-Pacific, presenting a conducive environment for new public listings. CapitaLand has expressed confidence in participating actively in this evolving segment, according to market sources.

The timing appears favourable as the REIT sector in India grew 13 percent in FY25, distributing substantial returns to investors amid rising demand from global capability centres. Leading players such as Mindspace Business Parks REIT have set leasing records, while Embassy Office REIT has raised its leasing targets amid strong corporate demand. Industry analysts suggest that REITs are becoming increasingly attractive to smart investors seeking stable returns.

Credit Platform Expected by 2027

CapitaLand is also reportedly assessing the viability of establishing a credit investment platform in India, although no immediate launch is expected in 2026. According to company sources, such a platform could be introduced by 2027 and would align with its core asset classes comprising business parks, logistics, and data centres.

This move is expected to complement the company's existing investment strategy and provide additional financing solutions in the Indian real estate market. Similar platforms have gained traction in India, with several institutional investors establishing debt funds to capitalise on the growing demand for structured credit in real estate development.

Strategic Outlook for India Market

India reportedly remains a central part of CapitaLand's global transformation from a traditional developer into an investment and asset management powerhouse. The company is said to view India's manufacturing momentum, digital infrastructure growth, and institutional capital demand as key enablers for scaling up operations in the country.

As part of its next phase, the company aims to pursue a capital-flexible, sector-focused growth model backed by active asset rotation and broader capital market participation, according to industry sources. This strategic direction mirrors the approach taken by other major institutional investors in the Indian market, with Brookfield India REIT making significant strides in expanding its portfolio.

The logistics and industrial segment continues to attract substantial investment, with players like Actis and Mahindra Lifespaces launching major joint ventures for industrial and logistics parks development. Additionally, global logistics developer Panattoni is investing heavily in South India's supply chain infrastructure.

Disclaimer: This article is based on publicly available information and industry sources. Readers are advised to conduct independent research before making any investment decisions. The views expressed herein do not constitute financial or investment advice. Property investments are subject to market risks, and past performance does not guarantee future results.