CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is in the past referred to as CapitaLand India. Ascendas IT Park (Pune) owns International Tech Park Pune in Hinjawadi (ITPP-H) in India.
The recommended divestment kinds area of the planned pipeline of investments being established by CLI India, CLINT’s sponsor. It is also claimed to supply CLINT with the ability to create even more scale in its profile in India and also deepens its existence in Pune which offers substantial operational advantages to the REIT.
ITPP-H is an information technology special financial zone (IT SEZ) that has an entire floor area of 2.3 million sq ft on 99-year leasehold land. The park makes up four establishments and is close to 100% leased to prominent IT/information technology-enabled services (ITES) renters like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and its conjoint venture associate Maharashtra Industrial Development Corporation (MIDC) have participated in different agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
“CLI’s proposed divestment of ITPP-H to CLINT is in line with our technique to supply quality, stable-performing properties to sustain the expansion of our financed trusts. Incorporating one more top-class IT park to CLINT’s strong portfolio of 8 IT parks allows CLI to join CLINT’s expansion in India, which is one of CLI’s core markets. The proposed divestment would enhance our budget under supervision and also fee-related earnings,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
“The proposed purchase adds in a top quality asset developed by the Sponsor right into the CLINT portfolio. The marquee renter account with high level of tenancy will add considerable range to the CLINT portfolio,” claims Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
The suggested divestment constitutes an interested person transaction (IPT) under the listing policies and also goes through CLINT’s unitholders’ authorization at an extraordinary standard conference (EGM). The EGM is targeted to be finished by February 2023.
Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
The buildings in the area have acquired Leadership in Energy and Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum certification for Green Campus.
After the divestment, CLI will certainly continue to offer property and even rent management solutions for ITPP-H to CLINT.
The divestment to CLINT comes with a thought of about INR13.5 billion ($221.9 million). The overall revenue factor represents a costs of around 9% to CLI’s valuation of ITPP-H in December 2021.
“With this transaction, CLI has publicized gross divestments of $2.9 billion year-to-date, close to our annual resources reusing target of $3 billion. Almost 90% are divestments to our listed investment and even nonpublic cars, illustrating these networks as essential growth motorists for us. CLI has a pipeline of about $10 billion of top quality real estates on our balance sheet, that we can possibly offer to our different premium income-generating listed funds and even nonpublic transports,” he includes.