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 shared venture associate Maharashtra Industrial Development Corporation (MIDC) have become part of separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.

ITPP-H is an infotech unique economic area (IT SEZ) in which has a total floor surface area of 2.3 million sq ft on 99-year leasehold land. The park comprises 4 establishments and is close to 100% subleased to prominent IT/information technology-enabled services (ITES) renters such as Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd

The structures in the area have recently gotten Leadership in Energy including Environmental Design (LEED) Gold certification also Indian Green Building Council (IGBC) Platinum license for Green Campus.

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

“The proposed purchase includes a top quality possession developed by the Sponsor into the CLINT profile. The marquee occupant profile with high level of tenancy will certainly add considerable range to the CLINT profile,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.

The proposed divestment types part of the prepared pipeline of assets being created by CLI India, CLINT’s supporter. It is also said to offer CLINT with the ability to develop better level in its profile in India and grows its visibility in Pune which offers significant operational benefits to the REIT.

The divestment to CLINT comes with a consideration of approximately INR13.5 billion ($221.9 million). The overall revenue concern represents a fee of around 9% to CLI’s evaluation of ITPP-H in December 2021.

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“With this transaction, CLI has actually introduced gross divestments of $2.9 billion year-to-date, close to our yearly capital reusing target of $3 billion. Almost 90% are divestments to our listed funds and even nonpublic vehicles, illustrating these systems as key development drivers for us. CLI has a pipeline of about $10 billion of top notch buildings on our balance sheet, which we can possibly offer to our several premium income-generating listed funds and special vehicles,” he adds.

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

The proposed divestment comprises an interested individual purchase (IPT) under the listing rules and undergoes CLINT’s unitholders’ consent at an extraordinary standard meeting (EGM). The EGM is ideal to be completed by February 2023.

“CLI’s suggested divestment of ITPP-H to CLINT is in line with our strategy to supply top quality, stable-performing possessions to sustain the growth of our sponsored trusts. Incorporating another top-class IT park to CLINT’s solid portfolio of eight IT parks makes it possible for CLI to join CLINT’s development in India, which is one of CLI’s core markets. The proposed divestment would certainly boost our funds under supervision as well as fee-related earnings,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.

Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is formerly referred to as CapitaLand India. Ascendas IT Park (Pune) owns International Tech Park Pune in Hinjawadi (ITPP-H) in India.

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