CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The recommended divestment comprises an interested person purchase (IPT) under the listing guidelines as well as is subject to CLINT’s unitholders’ permission at an unusual general meeting (EGM). The EGM is targeted to be completed by February 2023.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and its joint venture partner Maharashtra Industrial Development Corporation (MIDC) have entered into different contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The proposed divestment forms area of the structured pipeline of investments being created by CLI India, CLINT’s supporter. It is even said to provide CLINT with the ability to develop additionally scale in its portfolio in India and deepens its presence in Pune which provides substantial operational benefits to the REIT.
The divestment to CLINT comes at a consideration of approximately INR13.5 billion ($221.9 million). The complete profit consideration stands for a value of around 9% to CLI’s evaluation of ITPP-H in December 2021.
The buildings in the park have acquired Leadership in Energy including Environmental Design (LEED) Gold accreditation and Indian Green Building Council (IGBC) Platinum certification for Green Campus.
Right after the divestment, CLI will continue to offer property along with lease management services for ITPP-H to CLINT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is in the past called CapitaLand India. Ascendas IT Park (Pune) manages International Technology Park Pune in Hinjawadi (ITPP-H) in India.
Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
ITPP-H is an information technology special financial area (IT SEZ) that has an overall floor location of 2.3 million sq ft on 99-year leasehold land. The park comprises four properties and is close to 100% rented out to prominent IT/information technology-enabled services (ITES) tenants like Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
“The suggested acquisition adds in a high-quality possession established by the Sponsor into the CLINT portfolio. The marquee occupant profile with high degree of occupancy will include significant level to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
“With this transaction, CLI has actually introduced gross divestments of $2.9 billion year-to-date, near to our yearly resources recycling intended of $3 billion. Almost 90% are divestments to our listed budget and even private vehicles, showing these platforms as major growth drivers for us. CLI has a pipeline of around $10 billion of high-grade real estates on our balance sheet, which we can possibly offer to our several fee income-generating listed funds and private cars,” he includes.
“CLI’s proposed divestment of ITPP-H to CLINT is in line using our method to give quality, stable-performing assets to assist the development of our funded trusts. Adding one more top-class IT park to CLINT’s strong portfolio of eight IT parks enables CLI to join CLINT’s growth in India, which is one of CLI’s core markets. The proposed divestment would enhance our budget under supervision and also fee-related incomes,” claims Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.