CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The suggested divestment kinds aspect of the prepared pipeline of properties being developed by CLI India, CLINT’s supporter. It is also claimed to give CLINT with the capacity to develop better range in its portfolio in India and also deepens its existence in Pune which offers significant operational benefits to the REIT.
The divestment to CLINT comes with a consideration of roughly INR13.5 billion ($221.9 million). The overall revenue concern represents a premium of around 9% to CLI’s valuation of ITPP-H in December 2021.
“The proposed purchase includes a high-grade asset created by the Sponsor into the CLINT portfolio. The marquee renter account with greater level of tenancy will add substantial scale to the CLINT portfolio,” claims Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its shared venture associate Maharashtra Industrial Development Corporation (MIDC) have entered into separate 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.
ITPP-H is an infotech unique economical zone (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 structures and is close to 100% subleased to remarkable IT/information technology-enabled companies (ITES) occupants such as Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is formerly known as CapitaLand India. Ascendas IT Park (Pune) possesses International Tech Park Pune in Hinjawadi (ITPP-H) in India.
“CLI’s suggested divestment of ITPP-H to CLINT is in line using our strategy to offer high quality, stable-performing properties to assist the development of our sponsored trusts. Adding an additional top-class IT park to CLINT’s solid portfolio of 8 IT parks allows CLI to take part in CLINT’s growth in India, which is just one of CLI’s core markets. The proposed divestment would increase our funds under management and fee-related profits,” states Jonathan Yap, CEO, listed funds at CLI.
The properties in the park have 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 supply residential property and rent management solutions for ITPP-H to CLINT.
“With this proceeding, CLI has actually announced gross divestments of $2.9 billion year-to-date, near to our yearly capital reusing target of $3 billion. Almost 90% are divestments to our listed funds and nonpublic vehicles, illustrating these systems as major growth motorists for us. CLI has a pipeline of about $10 billion of premium buildings on our balance sheet, and that we can possibly offer to our several charges income-generating listed funds and even special cars,” he adds.
The recommended divestment constitutes an interested person purchase (IPT) under the listing policies and goes through CLINT’s unitholders’ approval at a special basic conference (EGM). The EGM is intended to be completed by February 2023.
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
