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 formerly referred to as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Tech Park Pune in Hinjawadi (ITPP-H) in India.
The properties in the park have obtained Leadership in Energy and Environmental Design (LEED) Gold certification together with Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
Right after the divestment, CLI will remain to supply property and even rent management services for ITPP-H to CLINT.
ITPP-H is an information technology unique economical zone (IT SEZ) that has a total floor surface location of 2.3 million sq ft on 99-year leasehold land. The park makes up 4 buildings and is close to 100% rented out to remarkable IT/information technology-enabled services (ITES) renters including Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
The suggested divestment forms aspect of the prepared pipeline of assets being developed by CLI India, CLINT’s promoter. It is also said to provide CLINT with the ability to produce even more scale in its profile in India as well as strengthens its existence in Pune which provides considerable functional benefits to the REIT.
The recommended divestment makes up an interested individual deal (IPT) under the listing policies as well as goes through CLINT’s unitholders’ permission at an unusual basic meeting (EGM). The EGM is intended to be completed by February 2023.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its shared venture associate Maharashtra Industrial Development Corporation (MIDC) have become part of different contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% including 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
“With this proceeding, CLI has publicized gross divestments of $2.9 billion year-to-date, close to our annual funding reusing target of $3 billion. Almost 90% are divestments to our listed investment and exclusive autos, illustrating these networks as major growth drivers for us. CLI has a pipeline of around $10 billion of top notch properties on our balance sheet, and that we can potentially present to our several premium income-generating listed funds and even special transports,” he includes.
“The proposed purchase adds a premium property established by the Sponsor right into the CLINT profile. The marquee lessee profile with high rank of occupancy will add considerable range to the CLINT portfolio,” says Sanjeev Dasgupta, Chief Executive Officer of the REIT trustee-manager.
The divestment to CLINT comes with a consideration of roughly INR13.5 billion ($221.9 million). The total revenue consideration offers a value of around 9% to CLI’s valuation of ITPP-H in December 2021.
Shares in CLI shut flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.
“CLI’s proposed divestment of ITPP-H to CLINT is in line with our strategy to give high quality, stable-performing assets to sustain the development of our sponsored trusts. Adding an additional top-class IT park to CLINT’s strong profile of 8 IT parks makes it possible for CLI to participate in CLINT’s expansion in India, which is just one of CLI’s core markets. The proposed divestment would certainly boost our funds under management and fee-related incomes,” says Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.