CapitaLand Investment and JV partner to divest Pune IT park to CapitaLand India Trust for $221.9m

International Tech Park Pune in Hinjawadi, India. Its sale consideration represents a premium of some 9 per cent to CLI’s valuation for the property in December 2021.

CAPITALAND INVESTMENT

SINGAPORE – A wholly owned subsidiary of CapitaLand Investment (CLI) and its joint venture partner have agreed to divest International Tech Park Pune in Hinjawadi (ITPP-H), India, to CapitaLand India Trust for 13.5 billion rupees (S$221.9 million).

The sale consideration represents a premium of some 9 per cent to CLI’s valuation for the property in December 2021, CLI said in a bourse filing on Thursday.

Subject to the sellers achieving pre-defined milestones and rents executed in the property at the time of payment, there may also be an additional purchase consideration of some 300 million rupees.

CLI owns approximately 78.5 per cent of ITPP-H, with its JV partner, Maharashtra Industrial Development, holding the balance.

The acquisition of ITPP-H would expand CapitaLand India Trust’s portfolio in Pune to a combined net lettable area (NLA) of 3.8 million sq ft, the trustee-manager said.

It expects the acquisition to create further scale in the trust’s India portfolio, while deepening its presence in Pune. The trustee-manager sees “significant operational advantages” in the transaction given ITPP-H’s proximity to an existing property owned by the trust.

Based on a historical pro forma basis, the acquisition is estimated to add three Singapore cents to the trust’s distribution per unit for financial year 2021 had the property been purchased, held and operated throughout the financial year.

Located on the outskirts of Pune, ITPP-H is spread across four buildings situated on about 10ha of land that has a 95-year leasehold interest.

It has an NLA of 2.3 million sq ft as well as about 2.3 million sq ft of leasable premium office space. According to the trustee-manager, the property has achieved 100 per cent occupancy, with a weighted average rent of 45.30 rupees per sq ft per month.

“CLI’s proposed divestment of ITPP-H to CapitaLand India Trust is in line with our strategy to provide quality, stable-performing assets to support the growth of our sponsored trusts,” said Mr Jonathan Yap, chief executive of listed funds at CLI.

The divestment is targeted for completion by February 2023, subject to approval from CapitaLand India Trust’s unit holders in an extraordinary general meeting.

Shares of CLI were up one cent or 0.3 per cent to $3.68 as at 9.10am on Thursday, while units of CapitaLand India Trust were down one cent or 0.9 per cent to $1.12. THE BUSINESS TIMES

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