CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
ITPP-H is an information technology special economical area (IT SEZ) that has a total floor area of 2.3 million sq ft on 99-year leasehold land. The park comprises four properties and is close to 100% leased to prominent IT/information technology-enabled services (ITES) tenants including Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its shared venture associate Maharashtra Industrial Development Corporation (MIDC) have participated in 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 buildings in the area have recently obtained Leadership in Energy including Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum certification for Green Campus.
After the divestment, CLI will certainly remain to give property along with rent management services for ITPP-H to CLINT.
The divestment to CLINT comes at a factor to consider of around INR13.5 billion ($221.9 million). The total revenue concern stands for a costs of around 9% to CLI’s valuation of ITPP-H in December 2021.
The recommended divestment comprises an interested individual transaction (IPT) under the listing guidelines as well as is subject to CLINT’s unitholders’ approval at a special general conference (EGM). The EGM is intended to be completed by February 2023.
“The proposed acquisition includes a premium property developed by the Sponsor right into the CLINT portfolio. The marquee tenant profile with greater degree of tenancy will certainly add considerable range to the CLINT portfolio,” states Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is previously called CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
The recommended divestment forms area of the planned pipeline of properties being established by CLI India, CLINT’s promoter. It is even claimed to provide CLINT with the capability to develop additionally scale in its portfolio in India and also strengthens its visibility in Pune which offers considerable functional advantages to the REIT.
“CLI’s suggested divestment of ITPP-H to CLINT remains in line with our method to provide quality, stable-performing assets to support the expansion of our financed trusts. Incorporating one more top-class IT park to CLINT’s solid profile of 8 IT parks enables CLI to take part in CLINT’s expansion in India, which is one of CLI’s core markets. The suggested divestment would certainly raise our account under management and fee-related earnings,” says Jonathan Yap, CEO, listed funds at CLI.
Shares in CLI shut flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.
“With this proceeding, CLI has actually introduced gross divestments of $2.9 billion year-to-date, close to our annual capital reusing aim at of $3 billion. Almost 90% are divestments to our listed investment and even exclusive cars, illustrating these networks as major growth drivers for us. CLI has a pipeline of around $10 billion of high-quality properties on our balance sheet, and that we can probably provide to our several charges income-generating listed funds along with private vehicles,” he adds.