CapitaLand plans to develop renewable energy as a standalone biz in India

Singapore-based CapitaLand Investment Ltd, renowned for its prowess in real estate assets, is set to explore and expand its footprint in the renewable energy sector in India. The global real estate investment and management firm aim to meet its own clean energy needs while also envisioning itself as a third-party supplier in the future.

Formerly known as Ascendas, CapitaLand has a well-diversified portfolio in India, encompassing assets across business parks, logistics, industrial infrastructure, serviced apartments, and data centers in seven cities. With over three decades of operations in India, the total assets under management for CapitaLand amount to approximately ₹31,000 crore.

Sanjeev Dasgupta, CEO of CapitaLand Investment India (CLI India), outlined the company's vision, stating, "I think our own requirements of clean power over the next 5 years would be 1 GW. But we wanted to go beyond that and become a provider to third parties. This is our vision. In this, we want to demonstrate our capabilities and then we will work out a renewable energy fund."

CapitaLand is on the brink of commissioning its first renewable project, a 21 MW solar plant in Thoothukudi, with an additional 8 MW to be commissioned later. The generated capacity will power the company's IT parks in and around Chennai.

The company intends to establish renewable energy as a standalone business in India, mirroring its approach in other sectors. CapitaLand plans to assemble a dedicated team for renewables with specialized industry expertise to scale the business efficiently.

CapitaLand's focus in the renewable sector extends to both solar and wind power assets, with solar anticipated to account for about 80% of the renewable portfolio, leaving the rest for wind projects.

The company emphasized that the growth in clean energy assets would be driven by favorable policies, with states like Karnataka and Tamil Nadu in the southern region offering conducive policies for developing clean energy assets. Dasgupta praised Tamil Nadu's progressive renewable sector policy.

While considering organic growth, CapitaLand does not rule out the acquisition route to expand its clean energy assets. The company is open to acquiring a controlling stake in companies with existing renewable assets and those in the development stages of new projects.

In addition to its ongoing investment of around ₹5,000 crore, CLI has proposed an additional investment of about ₹4,500 crore over the next 4-5 years. This investment will span business parks, data centers, and logistics in Chennai, including the ITPC - Radial Road business parks, Ambattur data center development, and logistics portfolio expansion through Ascendas First Space.

With nearly 10 million sq ft of 'Grade A' office space at various stages of development across key IT markets in India, including Chennai Business Park (Phase 2: 1.3 million sq ft), CapitaLand is poised for strategic growth in India's evolving real estate and renewable energy landscape.

HBL