CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The recommended divestment makes up an interested person purchase (IPT) following the listing regulations as well as goes through CLINT’s unitholders’ permission at a special standard conference (EGM). The EGM is targeted to be completed by February 2023.
The properties in the park have acquired Leadership in Energy including Environmental Design (LEED) Gold certification and Indian Green Building Council (IGBC) Platinum license for Green Campus.
Right after the divestment, CLI will certainly remain to give residential property along with lease management services for ITPP-H to CLINT.
ITPP-H is an information technology unique economic area (IT SEZ) in which has an entire floor surface area of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 structures and is close to 100% rented out to popular IT/information technology-enabled companies (ITES) tenants including Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
“CLI’s recommended divestment of ITPP-H to CLINT is in line with our method to supply quality, stable-performing assets to sustain the growth of our financed trusts. Including an additional top-class IT park to CLINT’s solid profile of 8 IT parks enables CLI to participate in CLINT’s growth in India, which is just one of CLI’s core markets. The recommended divestment would certainly boost our funds under supervision and fee-related incomes,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
“With this transaction, CLI has introduced gross divestments of $2.9 billion year-to-date, near our annual resources reusing target of $3 billion. Almost 90% are divestments to our listed funds and even nonpublic cars, demonstrating these platforms as major growth motorists for us. CLI has a pipeline of around $10 billion of premium properties on our balance sheet, which we can possibly offer to our several fee income-generating listed funds and even nonpublic transports,” he adds.
The proposed divestment types area of the planned pipeline of investments being established by CLI India, CLINT’s sponsor. It is even said to give CLINT with the capacity to develop further level in its profile in India and strengthens its existence in Pune which gives substantial functional benefits to the REIT.
“The proposed purchase adds in a premium asset created by the Sponsor into the CLINT profile. The marquee renter account with greater level of tenancy will include substantial range to the CLINT profile,” claims Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its conjoint venture associate 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% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is in the past referred to as CapitaLand India. Ascendas IT Park (Pune) owns International Technology Park Pune in Hinjawadi (ITPP-H) in India.
The divestment to CLINT comes at a thought of roughly INR13.5 billion ($221.9 million). The complete profit factor offers a fee of around 9% to CLI’s valuation of ITPP-H in December 2021.