CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
“CLI’s suggested divestment of ITPP-H to CLINT is in line using our method to provide top quality, stable-performing properties to assist the development of our sponsored trusts. Including an additional top-class IT park to CLINT’s strong profile of eight IT parks enables CLI to join CLINT’s expansion in India, which is among CLI’s core markets. The proposed divestment would increase our funds under management and also fee-related profits,” claims Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
“The suggested acquisition includes a high-quality property developed by the Sponsor into the CLINT profile. The marquee lessee account with high degree of tenancy will include considerable range to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
The structures in the park have acquired Leadership in Energy and Environmental Design (LEED) Gold qualification together with Indian Green Building Council (IGBC) Platinum license for Green Campus.
After the divestment, CLI will remain to offer property and rent management solutions for ITPP-H to CLINT.
“With this proceeding, CLI has actually introduced gross divestments of $2.9 billion year-to-date, close to our annual funding recycling intended of $3 billion. Nearly 90% are divestments to our listed funds and nonpublic cars, illustrating these systems as essential development motorists for us. CLI has a pipeline of around $10 billion of high-grade real estates on our balance sheet, which we can possibly provide to our various premium income-generating listed funds along with special transports,” he includes.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have already 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.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is in the past known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
The divestment to CLINT comes at a factor to consider of about INR13.5 billion ($221.9 million). The total sale concern represents a fee of around 9% to CLI’s valuation of ITPP-H in December 2021.
The recommended divestment comprises an interested individual transaction (IPT) following the listing regulations and is subject to CLINT’s unitholders’ authorization at an unusual general conference (EGM). The EGM is intended to be completed by February 2023.
ITPP-H is an information technology unique economic zone (IT SEZ) that has an entire floor area of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 buildings and is close to 100% rented to prominent IT/information technology-enabled companies (ITES) occupants such as Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
The suggested divestment forms part of the prepared pipeline of assets being developed by CLI India, CLINT’s supporter. It is even stated to provide CLINT with the capability to produce additionally scale in its profile in India and deepens its presence in Pune which provides significant functional advantages to the REIT.
Shares in CLI shut flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.