CapitaLand Investment (CLI) says it has successfully raised $150 million equity in the first close of its CapitaLand India Data Centre Fund (CIDCF). CIDCF will acquire a 20.2% interest in three data centres from CapitaLand India Trust (CLINT) following the first close.
According to a Dec 31 bourse filing, CIDCF will focus on data centre development opportunities in India. The fund is anchored by a third-party global institutional investor with a GP commitment from CLI. It is targeting a final close of about $300 million.
The three data centres CIDCF is acquiring from CLINT has an estimated total purchase consideration of INR 7.02 billion ($99.73 million). The consideration is based on 20.2% of the total enterprise value of INR 51.97 billion ($738.2 million) as at Dec 31. The enterprise value is at a premium to the independent valuation of INR 45.70 billion ($649 million) as at Dec 31 and is negotiated on a willing-buyer and willing-seller basis.
CLINT is divesting these three data centres: CapitaLand DC Mumbai Tower 1 and Tower 2 in Airoli, Navi Mumbai; CapitaLand DC Chennai in Ambattur, Chennai; CapitaLand DC Hyderabad in Madhapur, Hyderabad.
Mumbai Tower 1 and 2 have a power capacity (IT/gross) of 34/50 megawatts (MW) and 37/55 MW respectively. The centres in Chennai and Hyderabad have a power capacity of 34/53 MW and 27/42 MW respectively. Development for Mumbai Tower 1 is complete while the other centres are still under development. Power has been secured for all three data centres and they will have a combined gross capacity of 200 MW.
In addition to the three data centres, CIDCF says it will have the right of first offer on acquiring an interest in CLINT’s fourth data centre, CapitaLand DC Bangalore.
See also: CPP, Goodman to invest US$2.6 bil in European data centres
CLI’s group chief operating officer Andrew Lim says India has “emerged as a hotspot for data centre investment” and its data centre capacity is expected to double by 2027. “With three prime assets currently under development and power secured, CIDCF offers an attractive prospect for private capital to participate in this growth opportunity,” Lim adds.
Hardik Gesota, managing director and head of CLI’s India private funds, says CIDCF’s portfolio is “strategically located within India’s established data centre corridors” and is well-placed to satisfy the growing demand from hyperscalers and enterprise customers.
CLI’s real estate portfolio in India includes 38 assets with a total gross floor area of approximately 39 million square feet. They are located across eight Indian cities: Bangalore, Chennai, Hyderabad, Mumbai, Pune, Gurgaon, Kolkata and Goa. CLI’s assets in India comprises about 27 million square feet of Grade A office space and logistics assets of over 12 million square feet.
See also: Keppel to divest remaining interests in two data centres to Keppel DC REIT for $50.5 mil
Aside from data centres, CLI’s India portfolio includes business parks, industrial and logistical facilities, lodging and coworking assets. CLI’s total funds under management in India stand at about $8.4 billion as at Nov 5.
Shares for CLI closed at $2.71 while units for CLINT closed at $1.23 on Dec 30. CLI is up by 6.01% year to date while CLINT is up by 14.95% over the same period.
