The Indian unit of real estate firm CapitaLand is selling a stake in several data centers to another CapitaLand affiliate.

New Year’s Eve saw CapitaLand Investment Limited (CLI) announce it has successfully raised approximately S$150 million (US$115m) equity in the first close of its CapitaLand India Data Centre Fund (CIDCF), which is focused on data center development opportunities within India’s “key data center corridors."

The same day, CapitaLand India Trust (CLINT) announced it has entered into definitive agreements to divest 20.2 percent stakes in three data center assets under development to CIDCF for an estimated total purchase consideration of Rs 7.02 billion (S$99.73 million/US$77.5m).

The sale includes stakes in sites in Navi Mumbai, Chennai, and Hyderabad. CIDCF will also have the right of first offer on acquiring an interest in CLINT’s fourth data center in Bangalore.

In the Airoli area of Mumbai, the deal includes stakes in CapitaLand DC Mumbai Tower 1 and 2: the former is complete and offers 50MW total capacity, while the latter is under development and set to offer 55MW.

In Ambattur, Chennai, CapitaLand DC Chennai is under development and set to offer 55MW. In Madhapur, Hyderabad, the CapitaLand DC Hyderabad facility will offer 42MW at full development.

CLINT said the divestment of the partial stake in its data center portfolio “further reinforces the trust’s commitment to unlock value by monetizing and realizing the value of its developments to strengthen its balance sheet.”

Gauri Shankar Nagabhushanam, CEO of CapitaLand India Trust Management Pte. Ltd. (the trustee-manager of CLINT), said: “The partial divestment reflects continued execution of our 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 continued: “We are pleased to be partnering with CIDCF and remain invested in the future growth of India’s data center sector through our remaining stake in the portfolio. The partnership with CIDCF also provides CLINT the right to participate in a partial stake in future data center developments by our sponsor and potentially buy back the assets or explore exit options such as an initial public offering of the assets. Post-transaction, CLINT remains well-positioned to pursue accretive and higher-yielding investment growth opportunities in key India cities to create value for our unitholders.”

CIDCF held a first close of approximately S$150 million anchored by a unnamed third-party global institutional investor, with a GP commitment from CLI. The fund is targeting a final close of approximately S$300 million (US$223m).

Andrew Lim, group chief operating officer for CLI, said: “The successful first close and investor support in CIDCF underscore CLI’s investment and development strategies to shape India's dynamic data center landscape. India has emerged as a hotspot for data center investment, driven by cloud adoption, data localization, and the rapid growth of AI-led workloads. The country’s data center capacity is expected to double by 2027. With three prime assets currently under development and power secured, CIDCF offers an attractive prospect for private capital to participate in this growth opportunity.”