CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The divestment to CLINT comes at a consideration of about INR13.5 billion ($221.9 million). The complete profit factor stands for a costs of around 9% to CLI’s assessment of ITPP-H in December 2021.
The recommended divestment makes up an interested individual deal (IPT) following the listing regulations as well as is subject to CLINT’s unitholders’ consent at a special general meeting (EGM). The EGM is targeted to be finished by February 2023.
The recommended divestment types aspect of the prepared pipeline of investments being developed by CLI India, CLINT’s supporter. It is even stated to provide CLINT with the capacity to create further level in its profile in India and grows its visibility in Pune which provides considerable functional advantages to the REIT.
“With this proceeding, CLI has actually announced gross divestments of $2.9 billion year-to-date, near to our annual resources reusing target of $3 billion. Just about 90% are divestments to our listed funds and also private cars, showing these systems as key development motorists for us. CLI has a pipeline of about $10 billion of high-quality real estates on our balance sheet, that we can possibly present to our several premium income-generating listed funds and even private vehicles,” he adds.
Shares in CLI closed flat at $3.67 while units in CLINT closed flat at $1.13 on Dec 28.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and its conjoint venture associate 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 own 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The structures in the park have obtained Leadership in Energy also Environmental Design (LEED) Gold accreditation also Indian Green Building Council (IGBC) Platinum license for Green Campus.
Right after the divestment, CLI will continue to supply residential property along with lease management solutions for ITPP-H to CLINT.
“CLI’s proposed divestment of ITPP-H to CLINT is in line using our technique to give high quality, stable-performing possessions to assist the growth of our funded trusts. Including another top-class IT park to CLINT’s strong profile of 8 IT parks enables CLI to join CLINT’s growth in India, which is among CLI’s core markets. The recommended divestment would increase our funds under management and also fee-related earnings,” states Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
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 and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
ITPP-H is an infotech special financial area (IT SEZ) that has an overall floor surface area of 2.3 million sq ft on 99-year leasehold land. The park consists of 4 properties and is close to 100% rented to popular IT/information technology-enabled companies (ITES) renters like Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd
“The suggested acquisition adds in a premium property established by the Sponsor into the CLINT profile. The marquee renter account with greater level of tenancy will include considerable level to the CLINT profile,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
