CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is previously referred to as CapitaLand India. Ascendas IT Park (Pune) owns International Technology Park Pune in Hinjawadi (ITPP-H) in India.
“With this proceeding, CLI has actually publicized gross divestments of $2.9 billion year-to-date, close to our yearly funding recycling aim at of $3 billion. Just about 90% are divestments to our listed funds and nonpublic vehicles, showing these networks as major development motorists for us. CLI has a pipeline of around $10 billion of high-quality properties on our balance sheet, and that we can probably present to our different charges income-generating listed funds and even nonpublic cars,” he adds.
The properties in the park have recently gotten Leadership in Energy also Environmental Design (LEED) Gold certification and Indian Green Building Council (IGBC) Platinum certification for Green Campus.
Right after the divestment, CLI will certainly continue to give residential property and rent management services for ITPP-H to CLINT.
“CLI’s suggested divestment of ITPP-H to CLINT is in line using our approach to provide quality, stable-performing assets to support the growth of our sponsored trusts. Incorporating an additional top-class IT park to CLINT’s strong portfolio of eight IT parks makes it possible for CLI to take part in CLINT’s growth in India, which is one of CLI’s core markets. The recommended divestment would boost our budget under supervision as well as fee-related earnings,” says Jonathan Yap, CEO, listed funds at CLI.
ITPP-H is an infotech special economic area (IT SEZ) that has an overall floor location of 2.3 million sq ft on 99-year leasehold land. The park consists of four establishments and is close to 100% leased to popular IT/information technology-enabled companies (ITES) lessees like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with Tata Consultancy Services Ltd
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
“The proposed purchase adds in a high-quality property established by the Sponsor right into the CLINT profile. The marquee tenant account with greater rank of tenancy will include substantial range to the CLINT profile,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
The suggested divestment comprises an interested individual deal (IPT) under the listing regulations as well as goes through CLINT’s unitholders’ permission at a special standard meeting (EGM). The EGM is ideal to be completed by February 2023.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have recently entered into separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The divestment to CLINT comes with a consideration of roughly INR13.5 billion ($221.9 million). The complete revenue factor represents a value of around 9% to CLI’s evaluation of ITPP-H in December 2021.
The suggested divestment types area of the planned pipeline of properties being created by CLI India, CLINT’s sponsor. It is also stated to give CLINT with the capability to develop further range in its profile in India and grows its existence in Pune which provides significant functional benefits to the REIT.
