CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have entered into separate agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 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 previously referred to as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
“The suggested procurement adds in a high-quality asset established by the Sponsor right into the CLINT profile. The marquee tenant account with high rank of tenancy will add considerable range to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
“With this transaction, CLI has publicized gross divestments of $2.9 billion year-to-date, close to our annual resources reusing intended of $3 billion. Just about 90% are divestments to our listed budget and also private vehicles, illustrating these platforms as key growth drivers for us. CLI has a pipeline of around $10 billion of top quality properties on our balance sheet, that we can potentially present to our several premium income-generating listed funds along with nonpublic vehicles,” he includes.
The structures in the park have recently acquired Leadership in Energy including Environmental Design (LEED) Gold certification also Indian Green Building Council (IGBC) Platinum license for Green Campus.
After the divestment, CLI will certainly remain to offer residential property and even lease management solutions for ITPP-H to CLINT.
“CLI’s proposed divestment of ITPP-H to CLINT is in line using our method to offer top quality, stable-performing properties to sustain the growth of our financed trusts. Incorporating one more top-class IT park to CLINT’s solid profile of 8 IT parks enables CLI to participate in CLINT’s expansion in India, which is one of CLI’s core markets. The recommended divestment would boost our account under management as well as fee-related profits,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
ITPP-H is an information technology unique economical zone (IT SEZ) in which has an entire floor surface area of 2.3 million sq ft on 99-year leasehold land. The park consists of four buildings and is close to 100% subleased to prominent IT/information technology-enabled services (ITES) lessees such as Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
The proposed divestment forms part of the structured pipeline of assets being developed by CLI India, CLINT’s supporter. It is even claimed to supply CLINT with the ability to develop even more range in its portfolio in India as well as strengthens its presence in Pune which supplies considerable operational advantages to the REIT.
The divestment to CLINT comes at a thought of roughly INR13.5 billion ($221.9 million). The overall profit concern represents a value of around 9% to CLI’s assessment of ITPP-H in December 2021.
The recommended divestment constitutes an interested individual transaction (IPT) following the listing guidelines as well as is subject to CLINT’s unitholders’ authorization at a special general conference (EGM). The EGM is targeted to be completed by February 2023.
Shares in CLI shut flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.