CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The suggested divestment forms part of the structured pipeline of investments being created by CLI India, CLINT’s promoter. It is also said to offer CLINT with the capability to develop better level in its profile in India as well as grows its visibility in Pune which supplies significant functional benefits to the REIT.
“The suggested procurement adds in a top quality asset created by the Sponsor right into the CLINT portfolio. The marquee tenant account with greater rank of occupancy will include considerable range to the CLINT portfolio,” says Sanjeev Dasgupta, CEO of the REIT trustee-manager.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is previously known as CapitaLand India. Ascendas IT Park (Pune) possesses International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The properties in the area have recently obtained Leadership in Energy and Environmental Design (LEED) Gold accreditation and Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
After the divestment, CLI will continue to give property along with rent management services for ITPP-H to CLINT.
The divestment to CLINT comes at a factor to consider of about INR13.5 billion ($221.9 million). The complete sale concern offers a costs of around 9% to CLI’s evaluation of ITPP-H in December 2021.
“CLI’s recommended divestment of ITPP-H to CLINT is in line using our technique to offer quality, stable-performing assets to sustain the growth of our funded trusts. Incorporating one more top-class IT park to CLINT’s strong profile of eight IT parks enables CLI to join CLINT’s expansion in India, which is just one of CLI’s core markets. The proposed divestment would raise our funds under management and also fee-related incomes,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
The recommended divestment constitutes an interested individual purchase (IPT) following the listing policies and is subject to CLINT’s unitholders’ consent at an extraordinary general conference (EGM). The EGM is intended to be finished by February 2023.
“With this proceeding, CLI has announced gross divestments of $2.9 billion year-to-date, near our annual funding reusing intended of $3 billion. Just about 90% are divestments to our listed funds and private vehicles, showing these networks as key development drivers for us. CLI has a pipeline of about $10 billion of premium properties on our balance sheet, and that we can potentially present to our several premium income-generating listed funds and even private vehicles,” he adds.
Lentor Modern showflat location
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its joint venture partner Maharashtra Industrial Development Corporation (MIDC) have already entered into separate arrangements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
ITPP-H is an information technology special economical area (IT SEZ) that has a total floor location of 2.3 million sq ft on 99-year leasehold land. The park comprises 4 structures and is close to 100% rented out to remarkable IT/information technology-enabled companies (ITES) lessees including Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
