CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The proposed divestment forms area of the structured pipeline of properties being created by CLI India, CLINT’s sponsor. It is also claimed to offer CLINT with the capacity to develop additionally scale in its profile in India as well as deepens its visibility in Pune which provides significant functional benefits to the REIT.
The suggested divestment makes up an interested person deal (IPT) under the listing policies and also is subject to CLINT’s unitholders’ approval at an extraordinary basic conference (EGM). The EGM is ideal to be completed by February 2023.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have become part of different arrangements 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.
The structures in the area have recently obtained Leadership in Energy and Environmental Design (LEED) Gold accreditation together with Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
Right after the divestment, CLI will continue to give property along with lease management solutions for ITPP-H to CLINT.
“With this transaction, CLI has publicized gross divestments of $2.9 billion year-to-date, near our yearly capital recycling intended of $3 billion. Just about 90% are divestments to our listed budget and even nonpublic vehicles, showing these platforms as key development drivers for us. CLI has a pipeline of around $10 billion of high-quality real estates on our balance sheet, and that we can possibly present to our various fee income-generating listed funds and even special cars,” he includes.
“CLI’s recommended divestment of ITPP-H to CLINT remains in line using our technique to supply top quality, stable-performing assets to sustain the growth of our funded trusts. Including one more top-class IT park to CLINT’s strong profile of 8 IT parks enables CLI to take part in CLINT’s expansion in India, which is one of CLI’s core markets. The proposed divestment would certainly boost our budget under supervision and also fee-related earnings,” states Jonathan Yap, CEO, listed funds at CLI.
“The suggested acquisition includes a premium possession created by the Sponsor right into the CLINT profile. The marquee occupant account with greater degree of tenancy will certainly add substantial level to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
Shares in CLI closed flat at $3.67 while 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 formerly referred to as CapitaLand India. Ascendas IT Park (Pune) owns International Tech Park Pune in Hinjawadi (ITPP-H) in India.
The divestment to CLINT comes with a consideration of approximately INR13.5 billion ($221.9 million). The total profit factor represents a premium of around 9% to CLI’s valuation of ITPP-H in December 2021.
ITPP-H is an information technology unique financial area (IT SEZ) that has a total floor area of 2.3 million sq ft on 99-year leasehold land. The park comprises four establishments and is close to 100% rented out to popular IT/information technology-enabled services (ITES) tenants like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd