CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
ITPP-H is an infotech special financial area (IT SEZ) that has an entire floor location of 2.3 million sq ft on 99-year leasehold land. The park comprises 4 properties and is close to 100% leased to prominent IT/information technology-enabled companies (ITES) lessees including Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its shared venture associate Maharashtra Industrial Development Corporation (MIDC) have recently entered into different arrangements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The recommended divestment constitutes an interested person purchase (IPT) under the listing policies as well as goes through CLINT’s unitholders’ consent at an extraordinary basic conference (EGM). The EGM is ideal to be finished by February 2023.
“With this transaction, CLI has actually announced gross divestments of $2.9 billion year-to-date, close to our yearly funding recycling target of $3 billion. Nearly 90% are divestments to our listed funds and also nonpublic cars, showing these networks as major development motorists for us. CLI has a pipeline of around $10 billion of premium buildings on our balance sheet, which we can probably provide to our several charges income-generating listed funds and special vehicles,” he includes.
Shares in CLI shut flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
“CLI’s recommended divestment of ITPP-H to CLINT is in line with our approach to give high quality, stable-performing properties to assist the expansion of our sponsored trusts. Incorporating an additional top-class IT park to CLINT’s strong portfolio of eight IT parks makes it possible for CLI to participate in CLINT’s expansion in India, which is one of CLI’s core markets. The proposed divestment would certainly increase our funds under management as well as fee-related earnings,” states Jonathan Yap, CEO, listed funds at CLI.
The recommended divestment forms part of the prepared pipeline of assets being established by CLI India, CLINT’s promoter. It is also said to offer CLINT with the capacity to produce additionally scale in its profile in India and deepens its existence in Pune which supplies significant functional advantages to the REIT.
The divestment to CLINT comes with a factor to consider of about INR13.5 billion ($221.9 million). The overall sale concern represents a value of around 9% to CLI’s evaluation of ITPP-H in December 2021.
The properties in the park have recently acquired Leadership in Energy and Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum certification for Green Campus.
Right after the divestment, CLI will certainly remain to provide residential property and even lease management solutions for ITPP-H to CLINT.
“The suggested acquisition adds in a high-quality property established by the Sponsor into the CLINT profile. The marquee lessee profile with high level of occupancy will add significant level to the CLINT portfolio,” states Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is formerly known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
