CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The proposed divestment kinds aspect of the structured pipeline of investments being developed by CLI India, CLINT’s supporter. It is also said to provide CLINT with the ability to create better level in its portfolio in India and also deepens its existence in Pune which gives considerable operational advantages to the REIT.
The structures in the area have gotten Leadership in Energy also Environmental Design (LEED) Gold qualification and Indian Green Building Council (IGBC) Platinum certification for Green Campus.
After the divestment, CLI will certainly continue to offer property and rent management solutions for ITPP-H to CLINT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is previously known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Technology Park Pune in Hinjawadi (ITPP-H) in India.
“The proposed acquisition includes a top notch property developed by the Sponsor right into the CLINT profile. The marquee lessee profile with greater level of occupancy will certainly add significant range to the CLINT portfolio,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
Shares in CLI shut flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.
“CLI’s recommended divestment of ITPP-H to CLINT is in line with our method to provide top quality, stable-performing properties to assist the growth of our funded trusts. Including another top-class IT park to CLINT’s solid profile of 8 IT parks allows CLI to participate in CLINT’s growth in India, which is one of CLI’s core markets. The proposed divestment would certainly increase our budget under management and also fee-related profits,” claims Jonathan Yap, CEO, listed funds at CLI.
The suggested divestment constitutes an interested individual deal (IPT) under the listing policies as well as goes through CLINT’s unitholders’ consent at an unusual basic meeting (EGM). The EGM is targeted to be completed by February 2023.
“With this proceeding, CLI has publicized gross divestments of $2.9 billion year-to-date, close to our yearly resources recycling intended of $3 billion. Almost 90% are divestments to our listed investment and also exclusive autos, demonstrating these systems as essential growth motorists for us. CLI has a pipeline of about $10 billion of top notch real estates on our balance sheet, and that we can possibly provide to our different fee income-generating listed funds and private cars,” he adds.
ITPP-H is an information technology special financial zone (IT SEZ) in which has an entire floor surface location of 2.3 million sq ft on 99-year leasehold land. The park consists of 4 properties and is close to 100% leased to popular IT/information technology-enabled companies (ITES) tenants like Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
The divestment to CLINT comes with a thought of around INR13.5 billion ($221.9 million). The complete profit concern represents a costs of around 9% to CLI’s evaluation of ITPP-H in December 2021.
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 own 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
