CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil

CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its conjoint venture associate Maharashtra Industrial Development Corporation (MIDC) have recently become part of separate agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.

Shares in CLI shut flat at $3.67 whilst units in CLINT finalized flat at $1.13 on Dec 28.

Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is in the past known as CapitaLand India. Ascendas IT Park (Pune) possesses International Tech Park Pune in Hinjawadi (ITPP-H) in India.

ITPP-H is an infotech unique economical area (IT SEZ) that has an entire floor location of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 establishments and is close to 100% subleased to popular IT/information technology-enabled companies (ITES) occupants like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd

“The proposed procurement includes a high-quality possession created by the Sponsor into the CLINT portfolio. The marquee renter account with high level of occupancy will certainly add significant scale to the CLINT portfolio,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.

“With this transaction, CLI has actually announced gross divestments of $2.9 billion year-to-date, close to our yearly funding recycling intended of $3 billion. Just about 90% are divestments to our listed investment and also private autos, illustrating these networks as essential growth drivers for us. CLI has a pipeline of about $10 billion of top quality properties on our balance sheet, and that we can probably offer to our several fee income-generating listed funds and even private vehicles,” he adds.

“CLI’s proposed divestment of ITPP-H to CLINT is in line using our method to provide high quality, stable-performing properties to support the development of our funded trusts. Including another top-class IT park to CLINT’s solid profile of 8 IT parks makes it possible for CLI to participate in CLINT’s expansion in India, which is just one of CLI’s core markets. The proposed divestment would certainly boost our budget under supervision and also fee-related earnings,” says Jonathan Yap, CEO, listed funds at CLI.

The proposed divestment forms area of the prepared pipeline of properties being created by CLI India, CLINT’s promoter. It is even stated to give CLINT with the ability to create additionally scale in its profile in India as well as deepens its visibility in Pune which supplies considerable operational advantages to the REIT.

The recommended divestment makes up an interested person transaction (IPT) following the listing rules and is subject to CLINT’s unitholders’ approval at an unusual basic conference (EGM). The EGM is intended to be completed by February 2023.

Avenir Condo floor plan

The buildings in the park have obtained Leadership in Energy also Environmental Design (LEED) Gold qualification also Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.

Right after the divestment, CLI will continue to give residential property along with lease management solutions for ITPP-H to CLINT.

The divestment to CLINT comes at a consideration of about INR13.5 billion ($221.9 million). The total sale concern offers a value of around 9% to CLI’s assessment of ITPP-H in December 2021.

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