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 partner Maharashtra Industrial Development Corporation (MIDC) have already become part of different arrangements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The recommended divestment types aspect of the planned pipeline of investments being established by CLI India, CLINT’s promoter. It is also claimed to give CLINT with the capability to produce better range in its portfolio in India and strengthens its visibility in Pune which supplies substantial operational advantages to the REIT.
Shares in CLI shut flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.
“With this transaction, CLI has publicized gross divestments of $2.9 billion year-to-date, near to our annual funding reusing intended of $3 billion. Nearly 90% are divestments to our listed budget and nonpublic vehicles, demonstrating these systems as major 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 potentially provide to our various fee income-generating listed funds and even special cars,” he includes.
The divestment to CLINT comes at a consideration of about INR13.5 billion ($221.9 million). The overall sale concern represents a fee of around 9% to CLI’s evaluation of ITPP-H in December 2021.
ITPP-H is an information technology unique economic area (IT SEZ) in which has a total floor location of 2.3 million sq ft on 99-year leasehold land. The park consists of 4 structures and is close to 100% rented to prominent IT/information technology-enabled services (ITES) occupants including Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
“CLI’s proposed divestment of ITPP-H to CLINT remains in line with our technique to give top quality, stable-performing possessions to sustain the expansion of our sponsored trusts. Adding an additional top-class IT park to CLINT’s strong portfolio of eight IT parks allows CLI to join CLINT’s expansion in India, which is just one of CLI’s core markets. The recommended divestment would certainly raise our funds under management and fee-related incomes,” says Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
The buildings in the area have recently obtained Leadership in Energy including Environmental Design (LEED) Gold accreditation and Indian Green Building Council (IGBC) Platinum license for Green Campus.
After the divestment, CLI will continue to provide property along with lease management services for ITPP-H to CLINT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is in the past known as CapitaLand India. Ascendas IT Park (Pune) possesses International Tech Park Pune in Hinjawadi (ITPP-H) in India.
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“The suggested procurement includes a premium asset established by the Sponsor into the CLINT portfolio. The marquee occupant profile with greater degree of occupancy will certainly add significant scale to the CLINT portfolio,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
The recommended divestment comprises an interested person deal (IPT) following the listing policies and is subject to CLINT’s unitholders’ permission at a special standard meeting (EGM). The EGM is ideal to be finished by February 2023.
