CapitaLand India Trust has moved to partially monetise its growing digital infrastructure portfolio, selling a minority stake in three under-development data centres across western and southern India in a deal valued at Rs 702 crore. The transaction reflects how large real estate trusts are reshaping capital strategies to fund expansion in data-intensive assets while retaining long-term exposure to India’s fast-growing digital economy.
The divestment involves data centre projects located in Navi Mumbai, Hyderabad and Chennai three cities that have emerged as critical nodes in India’s data infrastructure network due to strong connectivity, power availability and enterprise demand. The buyer is a domestic data centre-focused fund backed by the same global real asset platform, enabling the trust to recycle capital without exiting the assets entirely. Industry experts say such partial stake sales are becoming an increasingly preferred model for infrastructure-heavy developments. Data centres require high upfront capital, long gestation periods and specialised energy and cooling systems. By bringing in a dedicated fund partner at an early stage, platforms like CapitaLand India Trust are able to reduce balance-sheet pressure while continuing to benefit from future operational upside. The enterprise value for the assets was determined through negotiated terms between related parties, with the trust retaining a significant ownership interest. As part of the arrangement, the data centre fund also holds a first-right option on a separate Bengaluru facility under development, indicating a longer-term partnership approach rather than a one-off transaction.
Market observers note that the move aligns with a broader portfolio reconstitution strategy underway across large real estate investment trusts. Earlier in the year, the trust had exited select stabilised assets in Chennai and Hyderabad its first such disposals since listing signalling a willingness to actively rebalance holdings in response to market cycles and capital needs. Parallel to the transaction, the fund acquiring the stake has secured approximately S$150 million in equity commitments at its first close, anchored by a global institutional investor. The fund is targeting a larger final corpus to back future data centre development along India’s primary digital corridors, including Mumbai, Bengaluru, Hyderabad and Chennai. Urban planners and sustainability specialists point out that the rapid expansion of data centres presents both opportunity and challenge for Indian cities. While such facilities support cloud computing, fintech, e-governance and digital services, they also place heavy demands on power, water and land. “The next phase of data centre growth must prioritise energy efficiency, renewable sourcing and responsible urban integration,” said an infrastructure policy analyst.
CapitaLand India Trust currently holds a diversified portfolio spanning IT parks, industrial and logistics facilities, alongside multiple data centre developments across major metros. As India’s digital consumption deepens, the trust’s capital-light approach to scaling data infrastructure could offer a template for balancing growth, resilience and long-term urban sustainability.
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CapitaLand India Trust Reshapes Digital Infrastructure Assets
