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 its joint venture associate Maharashtra Industrial Development Corporation (MIDC) have recently entered into separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.

The divestment to CLINT comes with a consideration of roughly INR13.5 billion ($221.9 million). The complete profit concern represents a value of around 9% to CLI’s valuation of ITPP-H in December 2021.

“The suggested procurement includes a top quality possession developed by the Sponsor into the CLINT portfolio. The marquee lessee account with high level of occupancy will add considerable range to the CLINT profile,” says Sanjeev Dasgupta, CEO of the REIT trustee-manager.

“CLI’s proposed divestment of ITPP-H to CLINT remains in line using our technique to give quality, stable-performing possessions to support the growth of our financed trusts. Incorporating one more top-class IT park to CLINT’s solid profile of eight IT parks makes it possible for CLI to take part in CLINT’s growth in India, which is just one of CLI’s core markets. The suggested divestment would increase our budget under management as well as fee-related revenues,” says Jonathan Yap, CEO, listed funds at CLI.

Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is previously referred to as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Technology Park Pune in Hinjawadi (ITPP-H) in India.

ITPP-H is an infotech special economic area (IT SEZ) in which has an entire floor surface location of 2.3 million sq ft on 99-year leasehold land. The park comprises four buildings and is close to 100% leased to remarkable IT/information technology-enabled companies (ITES) lessees like Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd

The structures in the area have recently obtained Leadership in Energy and Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.

Right after the divestment, CLI will remain to provide residential property and even lease management solutions for ITPP-H to CLINT.

The suggested divestment kinds part of the prepared pipeline of assets being created by CLI India, CLINT’s promoter. It is even said to offer CLINT with the ability to develop additionally range in its profile in India as well as deepens its presence in Pune which provides substantial functional benefits to the REIT.

Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.

The recommended divestment comprises an interested person purchase (IPT) following the listing rules as well as is subject to CLINT’s unitholders’ approval at an unusual basic conference (EGM). The EGM is targeted to be completed by February 2023.

“With this transaction, CLI has announced gross divestments of $2.9 billion year-to-date, close to our annual funding reusing aim at of $3 billion. Nearly 90% are divestments to our listed budget and also exclusive autos, showing these platforms as essential growth drivers for us. CLI has a pipeline of around $10 billion of premium buildings on our balance sheet, that we can possibly offer to our several premium income-generating listed funds and private vehicles,” he adds.

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