CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
“The suggested procurement includes a premium possession created by the Sponsor right into the CLINT profile. The marquee tenant profile with high degree of occupancy will certainly add substantial scale to the CLINT profile,” states Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have already become part of separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The recommended divestment types part of the structured pipeline of properties being established by CLI India, CLINT’s sponsor. It is also claimed to offer CLINT with the capability to produce additionally level in its portfolio in India and also deepens its presence in Pune which provides considerable operational advantages to the REIT.
The divestment to CLINT comes with a factor to consider of approximately INR13.5 billion ($221.9 million). The overall sale concern represents a premium of around 9% to CLI’s assessment of ITPP-H in December 2021.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is previously referred to as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Technology Park Pune in Hinjawadi (ITPP-H) in India.
“CLI’s suggested divestment of ITPP-H to CLINT remains in line with our strategy to offer top quality, stable-performing properties to sustain the expansion of our sponsored trusts. Adding an additional top-class IT park to CLINT’s strong profile of 8 IT parks allows CLI to join CLINT’s growth in India, which is just one of CLI’s core markets. The recommended divestment would increase our budget under supervision and fee-related earnings,” says Jonathan Yap, CEO, listed funds at CLI.
“With this proceeding, CLI has actually publicized gross divestments of $2.9 billion year-to-date, near to our yearly resources reusing target of $3 billion. Just about 90% are divestments to our listed funds and also private cars, showing these networks as essential growth motorists for us. CLI has a pipeline of about $10 billion of high-grade real estates on our balance sheet, and that we can possibly provide to our various fee income-generating listed funds and nonpublic transports,” he includes.
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
ITPP-H is an information technology special economical area (IT SEZ) that has an overall floor location of 2.3 million sq ft on 99-year leasehold land. The park comprises four buildings and is close to 100% rented out to remarkable IT/information technology-enabled services (ITES) lessees including Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
The buildings in the area have acquired Leadership in Energy and Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
Right after the divestment, CLI will continue to give property and even rent management solutions for ITPP-H to CLINT.
The suggested divestment makes up an interested individual deal (IPT) following the listing regulations and also is subject to CLINT’s unitholders’ authorization at an unusual general meeting (EGM). The EGM is ideal to be finished by February 2023.
