CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
The recommended divestment comprises an interested person deal (IPT) under the listing guidelines and undergoes CLINT’s unitholders’ consent at an unusual general conference (EGM). The EGM is targeted to be finished by February 2023.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, which is in the past known as CapitaLand India. Ascendas IT Park (Pune) possesses International Technology Park Pune in Hinjawadi (ITPP-H) in India.
“With this transaction, CLI has actually announced gross divestments of $2.9 billion year-to-date, near to our yearly capital reusing aim at of $3 billion. Just about 90% are divestments to our listed funds and nonpublic autos, illustrating these platforms as essential development motorists for us. CLI has a pipeline of around $10 billion of top quality real estates on our balance sheet, and that we can possibly provide to our various premium income-generating listed funds and special vehicles,” he includes.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its joint venture partner Maharashtra Industrial Development Corporation (MIDC) have recently entered into different agreements with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their corresponding 78.5% and even 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
Shares in CLI closed flat at $3.67 whilst units in CLINT finalized flat at $1.13 on Dec 28.
ITPP-H is an infotech special economic zone (IT SEZ) in which has an entire floor surface location 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 services (ITES) lessees like Infosys Ltd., Synechron Technologies Pvt. Ltd. along with 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 license for Green Campus.
Right after the divestment, CLI will certainly remain to give residential property and even rent management services for ITPP-H to CLINT.
The suggested divestment kinds area of the structured pipeline of investments being created by CLI India, CLINT’s supporter. It is even said to supply CLINT with the ability to produce even more scale in its portfolio in India as well as grows its presence in Pune which offers significant operational advantages to the REIT.
“The suggested procurement includes a top quality property created by the Sponsor into the CLINT profile. The marquee occupant account with high rank of tenancy will include considerable range to the CLINT portfolio,” claims Sanjeev Dasgupta, CEO of the REIT trustee-manager.
“CLI’s proposed divestment of ITPP-H to CLINT is in line with our approach to supply top quality, stable-performing properties to assist the expansion of our funded trusts. Incorporating an additional top-class IT park to CLINT’s strong profile of 8 IT parks enables CLI to take part in CLINT’s growth in India, which is one of CLI’s core markets. The proposed divestment would enhance our budget under management and fee-related revenues,” says Jonathan Yap, CHIEF EXECUTIVE OFFICER, listed funds at CLI.
The divestment to CLINT comes at a thought of approximately INR13.5 billion ($221.9 million). The overall sale factor represents a premium of around 9% to CLI’s assessment of ITPP-H in December 2021.