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 as well as its conjoint venture associate Maharashtra Industrial Development Corporation (MIDC) have become part of different contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
“With this proceeding, CLI has publicized gross divestments of $2.9 billion year-to-date, near our annual capital reusing intended of $3 billion. Almost 90% are divestments to our listed funds and also exclusive cars, illustrating these platforms as essential development motorists for us. CLI has a pipeline of about $10 billion of high-grade buildings on our balance sheet, and that we can potentially offer to our different fee income-generating listed funds and private transports,” he adds.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is previously known as CapitaLand India. Ascendas IT Park (Pune) owns International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The divestment to CLINT comes at a consideration of about INR13.5 billion ($221.9 million). The complete revenue consideration offers a costs of around 9% to CLI’s assessment of ITPP-H in December 2021.
“The suggested purchase includes a top notch possession created by the Sponsor into the CLINT profile. The marquee occupant profile with high level of occupancy will certainly add substantial level to the CLINT profile,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
The proposed divestment constitutes an interested individual purchase (IPT) under the listing guidelines and also undergoes CLINT’s unitholders’ approval at a special standard conference (EGM). The EGM is ideal to be completed by February 2023.
The suggested divestment forms area of the prepared pipeline of properties being established by CLI India, CLINT’s sponsor. It is also stated to offer CLINT with the ability to develop additionally range in its portfolio in India and strengthens its existence in Pune which provides considerable functional benefits to the REIT.
ITPP-H is an infotech unique financial area (IT SEZ) that has a total floor surface area of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 structures and is close to 100% rented to remarkable IT/information technology-enabled companies (ITES) renters like Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
“CLI’s proposed divestment of ITPP-H to CLINT is in line using our technique to give high quality, stable-performing possessions to assist the development of our financed trusts. Incorporating another top-class IT park to CLINT’s solid profile of 8 IT parks allows CLI to join CLINT’s expansion in India, which is just one of CLI’s core markets. The proposed divestment would increase our budget under management and fee-related earnings,” claims Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
The buildings in the park have recently obtained Leadership in Energy including Environmental Design (LEED) Gold accreditation together with Indian Green Building Council (IGBC) Platinum certification for Green Campus.
Right after the divestment, CLI will certainly continue to provide residential property and even lease management services for ITPP-H to CLINT.