CLINT proposes to acquire International Tech Park Pune from CLI subsidiary and JV partner for $221.9 mil
ITPP-H is an information technology special economic area (IT SEZ) that has an entire floor location of 2.3 million sq ft on 99-year leasehold land. The park comprises 4 properties and is close to 100% rented out to prominent IT/information technology-enabled services (ITES) occupants like Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
“CLI’s suggested divestment of ITPP-H to CLINT is in line using our method to provide quality, stable-performing possessions to support the expansion of our funded trusts. Incorporating an additional top-class IT park to CLINT’s strong portfolio of eight IT parks enables CLI to join CLINT’s growth in India, which is just one of CLI’s core markets. The suggested divestment would increase our budget under management and also fee-related incomes,” states Jonathan Yap, CEO, listed funds at CLI.
Ascendas India Development VII is a wholly-owned subsidiary of CLI India, that is formerly known as CapitaLand India. Ascendas IT Park (Pune) owns and operate International Technology Park Pune in Hinjawadi (ITPP-H) in India.
“The suggested procurement adds a premium asset created by the Sponsor into the CLINT profile. The marquee occupant profile with high degree of tenancy will add significant level to the CLINT profile,” states Sanjeev Dasgupta, CEO of the REIT trustee-manager.
The buildings in the area have acquired Leadership in Energy and Environmental Design (LEED) Gold accreditation together with Indian Green Building Council (IGBC) Platinum accreditation for Green Campus.
After the divestment, CLI will remain to provide property along with rent management services for ITPP-H to CLINT.
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
CapitaLand Investment’s (CLI) wholly-owned subsidiary Ascendas India Development VII as well as its shared venture partner Maharashtra Industrial Development Corporation (MIDC) have entered into different agreements 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 recommended divestment constitutes an interested person deal (IPT) following the listing guidelines and also undergoes CLINT’s unitholders’ approval at a special standard conference (EGM). The EGM is ideal to be completed by February 2023.
The divestment to CLINT comes at a thought of approximately INR13.5 billion ($221.9 million). The complete sale consideration offers a value of around 9% to CLI’s evaluation of ITPP-H in December 2021.
“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. Almost 90% are divestments to our listed budget and nonpublic autos, illustrating these networks as essential growth motorists for us. CLI has a pipeline of about $10 billion of high-grade properties on our balance sheet, that we can probably provide to our various fee income-generating listed funds and even nonpublic cars,” he includes.
The recommended divestment types area of the prepared pipeline of investments being established by CLI India, CLINT’s promoter. It is also claimed to offer CLINT with the capability to develop better range in its portfolio in India as well as grows its existence in Pune which gives considerable operational advantages to the REIT.