CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The suggested divestment forms aspect of the planned pipeline of investments being created by CLI India, CLINT’s supporter. It is even stated to supply CLINT with the capacity to develop better range in its profile in India and strengthens its existence in Pune which gives considerable operational benefits to the REIT.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its shared venture partner Maharashtra Industrial Development Corporation (MIDC) have recently entered into different contracts 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.
ITPP-H is an infotech unique economic zone (IT SEZ) that has an overall floor surface location of 2.3 million sq ft on 99-year leasehold land. The park comprises four establishments and is close to 100% subleased to remarkable IT/information technology-enabled services (ITES) lessees like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is previously called CapitaLand India. Ascendas IT Park (Pune) manages International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The divestment to CLINT comes at a factor to consider of around INR13.5 billion ($221.9 million). The total profit concern represents a fee of around 9% to CLI’s evaluation of ITPP-H in December 2021.
Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
“CLI’s recommended divestment of ITPP-H to CLINT remains in line with our strategy to give top quality, stable-performing assets to sustain the development of our funded trusts. Incorporating another top-class IT park to CLINT’s strong portfolio of eight IT parks enables CLI to take part in CLINT’s expansion in India, which is just one of CLI’s core markets. The suggested divestment would enhance our funds under management and also fee-related revenues,” claims Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
The properties in the area have gotten Leadership in Energy including Environmental Design (LEED) Gold certification together with Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
After the divestment, CLI will remain to provide residential property along with rent management services for ITPP-H to CLINT.
“With this transaction, CLI has actually announced gross divestments of $2.9 billion year-to-date, near our annual funding reusing target of $3 billion. Almost 90% are divestments to our listed funds and also nonpublic vehicles, showing these systems as essential development drivers for us. CLI has a pipeline of about $10 billion of top quality properties on our balance sheet, that we can potentially offer to our various charges income-generating listed funds and special vehicles,” he adds.
“The suggested acquisition adds a high-grade property established by the Sponsor right into the CLINT profile. The marquee tenant account with high rank of occupancy will certainly add considerable level to the CLINT profile,” says Sanjeev Dasgupta, CEO of the REIT trustee-manager.
The Hill @ One North Kingsford Development Pte Ltd
The suggested divestment constitutes an interested individual transaction (IPT) under the listing policies and also undergoes CLINT’s unitholders’ permission at a special standard conference (EGM). The EGM is ideal to be completed by February 2023.
