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, that is formerly known as CapitaLand India. Ascendas IT Park (Pune) possesses International Technology Park Pune in Hinjawadi (ITPP-H) in India.

“CLI’s proposed divestment of ITPP-H to CLINT remains in line with our technique to provide quality, stable-performing possessions to sustain the development of our sponsored trusts. Adding one more top-class IT park to CLINT’s strong portfolio of eight IT parks makes it possible for CLI to join CLINT’s expansion in India, which is just one of CLI’s core markets. The proposed divestment would enhance our budget under management and also fee-related revenues,” claims Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.

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CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its shared venture partner Maharashtra Industrial Development Corporation (MIDC) have already entered into separate agreements 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 divestment to CLINT comes with a thought of around INR13.5 billion ($221.9 million). The complete revenue factor represents a costs of around 9% to CLI’s evaluation of ITPP-H in December 2021.

ITPP-H is an infotech unique economic zone (IT SEZ) in which has an entire floor location of 2.3 million sq ft on 99-year leasehold land. The park consists of four buildings and is close to 100% rented out to prominent IT/information technology-enabled companies (ITES) renters including Infosys Ltd., Synechron Technologies Pvt. Ltd. and Tata Consultancy Services Ltd

Shares in CLI closed flat at $3.67 whilst units in CLINT finalized flat at $1.13 on Dec 28.

“With this proceeding, CLI has actually introduced gross divestments of $2.9 billion year-to-date, near our yearly capital reusing intended of $3 billion. Nearly 90% are divestments to our listed funds and even nonpublic cars, demonstrating these networks as key development motorists for us. CLI has a pipeline of about $10 billion of top quality properties on our balance sheet, which we can probably present to our various fee income-generating listed funds along with special cars,” he includes.

The recommended divestment kinds area of the structured pipeline of investments being developed by CLI India, CLINT’s sponsor. It is even claimed to supply CLINT with the ability to produce even more level in its portfolio in India and strengthens its presence in Pune which offers substantial functional benefits to the REIT.

“The proposed purchase adds a premium asset developed by the Sponsor right into the CLINT portfolio. The marquee tenant profile with greater rank of tenancy will add significant level to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.

The proposed divestment constitutes an interested individual transaction (IPT) under the listing guidelines and undergoes CLINT’s unitholders’ authorization at an extraordinary general conference (EGM). The EGM is targeted to be completed by February 2023.

The structures in the area have recently acquired Leadership in Energy and Environmental Design (LEED) Gold qualification and Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.

After the divestment, CLI will continue to offer property along with lease management solutions for ITPP-H to CLINT.

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