CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The divestment to CLINT comes with a thought of around INR13.5 billion ($221.9 million). The overall sale consideration stands for a value of around 9% to CLI’s assessment of ITPP-H in December 2021.
“With this proceeding, CLI has announced gross divestments of $2.9 billion year-to-date, near our yearly funding recycling aim at of $3 billion. Nearly 90% are divestments to our listed funds and also nonpublic autos, illustrating these platforms as major growth motorists for us. CLI has a pipeline of about $10 billion of high-grade buildings on our balance sheet, and that we can potentially offer to our different charges income-generating listed funds along with special cars,” he adds.
“The suggested acquisition adds in a top quality asset established by the Sponsor into the CLINT profile. The marquee lessee account with high level of tenancy will certainly add significant scale to the CLINT profile,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
The suggested divestment constitutes an interested individual purchase (IPT) following the listing guidelines as well as undergoes CLINT’s unitholders’ consent at a special basic conference (EGM). The EGM is targeted to be finished by February 2023.
Shares in CLI shut flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
The buildings in the park have recently acquired Leadership in Energy and Environmental Design (LEED) Gold certification together with Indian Green Building Council (IGBC) Platinum certification for Green Campus.
After the divestment, CLI will remain to offer property and even lease management solutions for ITPP-H to CLINT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is formerly known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The proposed divestment types aspect of the structured pipeline of assets being created by CLI India, CLINT’s promoter. It is also stated to provide CLINT with the ability to create further level in its portfolio in India and strengthens its existence in Pune which supplies substantial functional benefits to the REIT.
ITPP-H is an infotech unique financial area (IT SEZ) that has an entire floor surface area of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 buildings and is close to 100% leased to prominent IT/information technology-enabled companies (ITES) lessees including Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
“CLI’s suggested divestment of ITPP-H to CLINT is in line using our technique to provide quality, stable-performing properties to assist the growth of our funded trusts. Adding an additional top-class IT park to CLINT’s solid portfolio of 8 IT parks allows CLI to participate in CLINT’s development in India, which is one of CLI’s core markets. The proposed divestment would increase our budget under supervision as well as fee-related profits,” says Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and its shared venture partner Maharashtra Industrial Development Corporation (MIDC) have already become part of different contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
