CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII and also its joint venture partner Maharashtra Industrial Development Corporation (MIDC) have recently become part of separate arrangements 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 divestment to CLINT comes at a thought of about INR13.5 billion ($221.9 million). The overall revenue consideration offers a value of around 9% to CLI’s evaluation of ITPP-H in December 2021.
The suggested divestment makes up an interested individual transaction (IPT) under the listing guidelines and also undergoes CLINT’s unitholders’ approval at an extraordinary general conference (EGM). The EGM is intended to be completed by February 2023.
“CLI’s suggested divestment of ITPP-H to CLINT remains in line using our strategy to provide top quality, stable-performing properties to sustain the development of our financed trusts. Including one more top-class IT park to CLINT’s solid portfolio of 8 IT parks makes it possible for CLI to participate in CLINT’s development in India, which is just one of CLI’s core markets. The proposed divestment would certainly raise our funds under management as well as fee-related profits,” says Jonathan Yap, CEO, listed funds at CLI.
Shares in CLI closed flat at $3.67 whilst units in CLINT closed flat at $1.13 on Dec 28.
The suggested divestment kinds aspect of the planned pipeline of properties being developed by CLI India, CLINT’s promoter. It is even claimed to supply CLINT with the ability to create better level in its profile in India and also grows its presence in Pune which gives significant functional advantages to the REIT.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is in the past known as CapitaLand India. Ascendas IT Park (Pune) owns International Tech Park Pune in Hinjawadi (ITPP-H) in India.
“The proposed purchase includes a high-grade asset established by the Sponsor into the CLINT profile. The marquee renter account with greater degree of occupancy will add considerable level to the CLINT profile,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
“With this proceeding, CLI has actually introduced gross divestments of $2.9 billion year-to-date, close to our yearly capital recycling aim at of $3 billion. Just about 90% are divestments to our listed investment and nonpublic vehicles, illustrating these networks as essential growth drivers for us. CLI has a pipeline of around $10 billion of high-quality buildings on our balance sheet, which we can probably provide to our several premium income-generating listed funds and nonpublic vehicles,” he adds.
ITPP-H is an infotech special financial zone (IT SEZ) in which has an overall floor area of 2.3 million sq ft on 99-year leasehold land. The park makes up four structures and is close to 100% rented out to remarkable IT/information technology-enabled companies (ITES) renters such as Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
The buildings in the park have recently gotten Leadership in Energy also Environmental Design (LEED) Gold accreditation and Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
Right after the divestment, CLI will certainly remain to offer residential property and even rent management solutions for ITPP-H to CLINT.