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 and also its shared venture associate Maharashtra Industrial Development Corporation (MIDC) have recently become part of separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
ITPP-H is an information technology special economical area (IT SEZ) in which has an entire floor surface location of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 establishments and is close to 100% leased to popular IT/information technology-enabled companies (ITES) renters like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd
The proposed divestment forms aspect of the structured pipeline of properties being established by CLI India, CLINT’s sponsor. It is also said to provide CLINT with the capability to produce additionally scale in its portfolio in India as well as grows its presence in Pune which provides considerable functional advantages to the REIT.
“With this transaction, CLI has actually publicized gross divestments of $2.9 billion year-to-date, near to our yearly resources reusing intended of $3 billion. Almost 90% are divestments to our listed investment and also nonpublic vehicles, illustrating these systems as essential development drivers for us. CLI has a pipeline of around $10 billion of top quality real estates on our balance sheet, and that we can possibly offer to our various fee income-generating listed funds along with private transports,” he adds.
The proposed divestment constitutes an interested person deal (IPT) under the listing guidelines as well as is subject to CLINT’s unitholders’ authorization at an extraordinary standard meeting (EGM). The EGM is ideal to be completed by February 2023.
“CLI’s suggested divestment of ITPP-H to CLINT is in line with our approach to provide quality, stable-performing properties to support the growth of our funded trusts. Adding one more top-class IT park to CLINT’s solid profile of 8 IT parks enables CLI to take part in CLINT’s development in India, which is just one of CLI’s core markets. The suggested divestment would enhance our budget under management and fee-related earnings,” says Jonathan Yap, CEO, listed funds at CLI.
The divestment to CLINT comes with a thought of approximately INR13.5 billion ($221.9 million). The complete profit factor represents a fee of around 9% to CLI’s valuation of ITPP-H in December 2021.
“The proposed purchase includes a top quality property developed by the Sponsor into the CLINT portfolio. The marquee tenant account with high rank of occupancy will certainly include significant level to the CLINT profile,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
Shares in CLI shut 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, that is previously known as CapitaLand India. Ascendas IT Park (Pune) owns International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The properties in the park have recently gotten Leadership in Energy also Environmental Design (LEED) Gold certification and Indian Green Building Council (IGBC) Platinum certification for Green Campus.
Right after the divestment, CLI will continue to provide residential property and rent management services for ITPP-H to CLINT.