CapitaLand India Trust Divests Minority Stake in Data Center Portfolio to Affiliate Fund

CapitaLand India Trust Divests Minority Stake in Data Center Portfolio to Affiliate Fund January 2, 2026 In a strategic financial maneuver within India's booming digital infrastructure sector, CapitaLand India Trust (CLINT) has divested a significant minority stake in three of its under-construction data center assets to a newly launched affiliate fund. The transaction underscores the intense investor appetite for data center projects in a market projected to double its capacity within two years, driven by cloud adoption, data localization mandates, and the explosive growth of AI workloads. The deal, announced on December 31, 2025, involves CLINT selling a 20.2 percent stake in each of three facilities to the CapitaLand India Data Centre Fund (CIDCF) for an estimated total consideration of Rs 7.02 billion (approximately S$99.73 million or US$77.5 million). The assets are located in key Indian data center corridors: Navi Mumbai, Chennai, and Hyderabad. CIDCF also secured a right of first offer for a potential stake in CLINT's fourth data center project in Bangalore. The portfolio's scale is substantial. In Mumbai's Airoli area, the stake covers the 50MW CapitaLand DC Mumbai Tower 1, which is operational, and the 55MW Tower 2, currently under construction. The Chennai facility in Ambattur and the Hyderabad site in Madhapur, both under development, are slated to offer 55MW and 42MW of total IT capacity, respectively. Concurrently, CIDCF reported a successful first close, raising approximately S$150 million (US$115 million) in equity, anchored by an unnamed global institutional investor. The fund is targeting a final close of around S$300 million. CLINT's CEO, Gauri Shankar Nagabhushanam, framed the move as part of a portfolio reconstitution strategy. "By unlocking value earlier in the development cycle, while retaining a significant stake in the assets, we are able to support our development pipeline and enhance financial flexibility," he stated. He added that the partnership provides CLINT with options to participate in future developments and potential exit avenues, such as an initial public offering for the assets. From a broader industry perspective, the transaction highlights a model for capital recycling and risk-sharing in capital-intensive data center development. Andrew Lim, Group Chief Operating Officer of CapitaLand Investment Limited, emphasized the growth narrative, noting, "India has emerged as a hotspot for data center investment... The country’s data center capacity is expected to double by 2027." This internal stake sale between CapitaLand entities facilitates continued expansion while attracting third-party capital, positioning the group to capitalize on one of the world's fastest-growing digital economies. Source: datacenterdynamics