CapitaLand India Trust to acquire IT park in Bangalore for 12.3b rupees
Claudia Chong
THE trustee-manager of CapitaLand India Trust (CLINT) has entered into a forward purchase agreement to acquire a one million square foot (sq ft) IT park in Bangalore, India for 12.3 billion rupees (S$201 million).
The project at Outer Ring Road, Bangalore’s largest office micro-market, comprises two buildings with a total net leasable area of 1.5 million sq ft.
CLINT is proposing to fund the development of the project and subsequently acquire a net leasable area of one million sq ft, with the remaining net leasable area to be retained by the landowners.
The landowners have appointed CapitaLand Services (India) to oversee the design, development and leasing of the project.
CLINT’s investment in the construction of the project will be through debt and internal resources. The trustee-manager expects to use debt from H1 2024.
The estimated purchase price of 12.3 billion rupees includes funding for the project, which has a construction timeline spanning Q1 2023 to Q4 2025.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Upon completion of the one million sq ft development and fulfilment of other conditions, CLINT will fully acquire Ebisu Techpark, the entity that owns and will develop the building.
The project complements CLINT’s existing portfolio in Whitefield (International Tech Park Bangalore) and Hebbal (Gardencity), offering tenants options across micro-markets, said the trustee-manager.
The micro-market represents 44 per cent of Bangalore’s absorption and has low vacancy. Outer Ring Road is one of the preferred locations for multinational tenants including Google, Amazon, Goldman Sachs and JPMorgan, it added.
With the acquisition, CLINT’s portfolio size (inclusive of committed investment pipeline) will increase by 3.6 per cent from about 28 million sq ft to around 29 million sq ft.
The counter ended at S$1.16 on Wednesday (Jan 18), down S$0.01 or 0.9 per cent.
Copyright SPH Media. All rights reserved.
