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, which is in the past called CapitaLand India. Ascendas IT Park (Pune) owns International Technology Park Pune in Hinjawadi (ITPP-H) in India.
Shares in CLI shut flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
The suggested divestment types aspect of the planned pipeline of investments being established by CLI India, CLINT’s sponsor. It is also claimed to offer CLINT with the capacity to produce even more range in its profile in India and deepens its visibility in Pune which supplies significant functional advantages to the REIT.
The divestment to CLINT comes at a consideration of about INR13.5 billion ($221.9 million). The complete revenue factor offers a fee of around 9% to CLI’s assessment of ITPP-H in December 2021.
ITPP-H is an information technology special financial area (IT SEZ) in which has a total floor location of 2.3 million sq ft on 99-year leasehold land. The park makes up four establishments and is close to 100% leased to prominent IT/information technology-enabled companies (ITES) tenants like Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
“CLI’s suggested divestment of ITPP-H to CLINT remains in line using our technique to offer quality, stable-performing possessions to support the development of our financed trusts. Adding an additional top-class IT park to CLINT’s strong portfolio of eight IT parks allows CLI to join CLINT’s growth in India, which is one of CLI’s core markets. The suggested divestment would boost our funds under supervision and also fee-related earnings,” claims Jonathan Yap, CEO, listed funds at CLI.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its conjoint venture partner Maharashtra Industrial Development Corporation (MIDC) have already entered into different agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their own 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
. The structures in the area have gotten Leadership in Energy and Environmental Design (LEED) Gold certification also Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
Right after the divestment, CLI will continue to offer property along with lease management services for ITPP-H to CLINT.
“The suggested purchase adds a top quality possession established by the Sponsor right into the CLINT portfolio. The marquee renter account with greater rank of tenancy will certainly include significant scale to the CLINT profile,” states Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
“With this transaction, CLI has actually introduced gross divestments of $2.9 billion year-to-date, near our annual capital recycling target of $3 billion. Nearly 90% are divestments to our listed funds and even private vehicles, demonstrating these systems as essential development drivers for us. CLI has a pipeline of around $10 billion of high-grade buildings on our balance sheet, that we can potentially offer to our several fee income-generating listed funds and nonpublic cars,” he includes.
The suggested divestment constitutes an interested individual purchase (IPT) following the listing regulations as well as is subject to CLINT’s unitholders’ authorization at a special standard conference (EGM). The EGM is targeted to be completed by February 2023.