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 associate Maharashtra Industrial Development Corporation (MIDC) have recently participated in separate contracts with CapitaLand India Trust (CLINT) where Ascendas India Development VII and MIDC will divest their respective 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT.
The divestment to CLINT comes at a consideration of around INR13.5 billion ($221.9 million). The overall sale consideration offers a premium of around 9% to CLI’s valuation of ITPP-H in December 2021.
The proposed divestment constitutes an interested person transaction (IPT) under the listing guidelines and goes through CLINT’s unitholders’ authorization at an extraordinary standard meeting (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 previously called CapitaLand India. Ascendas IT Park (Pune) possesses International Tech Park Pune in Hinjawadi (ITPP-H) in India.
“With this transaction, CLI has actually publicized gross divestments of $2.9 billion year-to-date, near to our annual capital reusing intended of $3 billion. Just about 90% are divestments to our listed budget and nonpublic vehicles, illustrating these platforms as essential development motorists for us. CLI has a pipeline of about $10 billion of high-quality real estates on our balance sheet, which we can probably present to our several fee income-generating listed funds along with nonpublic cars,” he adds.
Shares in CLI closed flat at $3.67 while units in CLINT finalized flat at $1.13 on Dec 28.
“CLI’s proposed divestment of ITPP-H to CLINT is in line with our method to supply top quality, stable-performing assets to support the expansion of our sponsored trusts. Adding another top-class IT park to CLINT’s solid portfolio of eight IT parks allows CLI to join CLINT’s development in India, which is just one of CLI’s core markets. The proposed divestment would increase our funds under management and also fee-related profits,” says Jonathan Yap, CEO, listed funds at CLI.
The buildings in the park have recently gotten Leadership in Energy also Environmental Design (LEED) Gold certification together with Indian Green Building Council (IGBC) Platinum license for Green Campus.
Right after the divestment, CLI will remain to offer residential property and lease management solutions for ITPP-H to CLINT.
ITPP-H is an information technology unique financial area (IT SEZ) in which has an overall floor surface area of 2.3 million sq ft on 99-year leasehold land. The park makes up four properties and is close to 100% rented to popular IT/information technology-enabled services (ITES) renters including Infosys Ltd., Synechron Technologies Pvt. Ltd. and even Tata Consultancy Services Ltd
The recommended divestment kinds part of the structured pipeline of investments being established by CLI India, CLINT’s promoter. It is even said to supply CLINT with the capacity to create further scale in its portfolio in India and grows its visibility in Pune which supplies considerable functional advantages to the REIT.
“The suggested procurement adds a high-quality possession established by the Sponsor into the CLINT profile. The marquee tenant profile with greater rank of tenancy will certainly add significant range to the CLINT portfolio,” states Sanjeev Dasgupta, CEO of the REIT trustee-manager.