Singapore’s CapitaLand India Trust (CLINT) has secured a five-year construction loan of INR13 billion ($157 million) from J.P. Morgan India to finance phase 1 development of its data center in Navi Mumbai.
Securing this onshore loan in India reflects CLINT’s disciplined capital management through a diversification of its funding sources, CLINT said in a statement on Friday.
According to the statement, construction of the data center has commenced and is scheduled for completion by mid-2025.
Besides its data center in Navi Mumbai, CLINT said it currently has three other data centers under development in India.
“CLINT remains disciplined in capital management. Securing this onshore loan in India would diversify our funding sources and help us to optimize our funding costs,” said Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Pte. Ltd. (the TrusteeManager of CLINT).
Meanwhile, Wai Mei Hong, Senior Country Officer and Head of Corporate Banking for J.P. Morgan Singapore said the financing of CLINT’s data center in Navi Mumbai reinforces the firm’s commitment to support the long-term growth strategies of our clients.
“CLINT’s project also helps to pivot the transformation of the digital economy in India,
CLINT, formerly known as Ascendas India Trust, was listed on the Singapore stock exchange in August 2007 as an Indian property trust in Asia.
Its principal objective is to own income-producing real estate used primarily as business space in India.
CLINT may also develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion.
As of September 30, 2023, CLINT’s assets under management stand at SGD 2.7 billion ($1.99 billion).
The fund is focused on capitalizing on the fast-growing IT industry and logistics/industrial asset classes in India, as well as proactively diversifying into other new economy asset class such as data centers.
CLINT is structured as a business trust, offering stable income distributions similar to a real estate investment trust.
The fund focuses on enhancing shareholder value by actively managing existing properties, developing vacant land in its portfolio, and acquiring new properties.
CLINT is managed by CapitaLand India Trust Management Pte. Ltd., formerly known as Ascendas Property Fund Trustee Pte. Ltd.
The trustee-manager is a wholly owned subsidiary of Singapore-listed CapitaLand Investment Limited (CLI), a global real estate investment manager with a strong Asia foothold.
As of 30 September 2023, CLI had SGD 133 billion ($97.83 billion) of real estate assets under management, and SGD 90 billion ($66.2 billion) of real estate funds under management (FUM) held via six listed real estate investment trusts and business trusts, and more than 30 private vehicles across Asia Pacific, Europe and United States.
Its diversified real estate asset classes cover retail, office, lodging, business parks, industrial, logistics and data centers.