CHENNAI: CapitaLand Investment Limited (CLI) has launched a business park development fund, CapitaLand India Growth Fund 2 (CIGF2), with a target fund size of S$525 million to invest in Grade A business parks in prime locations across gateway cities in India.

CLI has secured S$263 mn1 (Rs 16.3 billion) from a global institution for a 50% stake in the fund’s first closing. It intends to maintain a sponsor stake of 20% in the fund, in line with its asset-light strategy to grow its funds under management (FUM) while keeping strong alignment with its investors and partners.

Including CLI’s equity contribution for the 20% stake, total equity commitment for the first closing is S$368 mn (Rs 22.9 bn). This is expected to add about S$700 mn to CLI’s FUM. Located in the business hub of Chennai, the 2.6 mn-sq ft ITPC-Radial Road caters to the IT/IT-ES sectors.