CapitaLand Investment and JV partner to divest Pune IT park to CapitaLand India Trust for 13.5b rupees
Renald Yeo
A WHOLLY-OWNED subsidiary of CapitaLand Investment (CLI) and its joint venture (JV) partner have agreed to divest International Tech Park Pune, Hinjawadi (ITPP-H) to CapitaLand India Trust for 13.5 billion rupees (S$221.9 million).
The sale consideration represents a premium of some 9 per cent to CLI’s valuation for the site in December 2021, CLI said in a bourse filing on Thursday (Dec 29).
Subject to the sellers achieving pre-defined milestones and rents executed in the property at the time of payment, there may also be an additional purchase consideration of some 300 million rupees.
CLI owns approximately 78.5 per cent of ITPP-H. Its JV partner, Maharashtra Industrial Development Corporation, holds the balance.
The acquisition of ITPP-H would expand CapitaLand India Trust’s portfolio in Pune to a combined net lettable area (NLA) of 3.8 million square feet (sq ft), the trustee-manager said.
It expects the acquisition to create further scale in the trust’s India portfolio, while deepening its presence in Pune. Therefore, the trustee-manager sees “significant operational advantages” in the transaction, given ITPP-H’s proximity to an existing property owned by the trust.
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Based on a historical pro-forma basis, the acquisition is estimated to add 0.03 Singapore cent to the trust’s distribution per unit for FY2021 had the property been purchased, held and operated throughout the financial year.
Located on the outskirts of Pune, India, ITPP-H is spread across four buildings situated on 25 acres (10.1 hectares) of land that has a 95-year leasehold interest.
It has NLA of 2.3 million sq ft as well as about 2.3 million sq ft of leasable premium office space. According to the trustee-manager, the property has achieved 100 per cent occupancy with a weighted average rent of 45.30 rupees per sq ft per month.
“CLI’s proposed divestment of ITPP-H to CapitaLand India Trust is in line with our strategy to provide quality, stable-performing assets to support the growth of our sponsored trusts,” said Jonathan Yap, chief executive of listed funds at CLI.
The divestment is targeted for completion by February 2023, subject to approval from CapitaLand India Trust’s unitholders in an extraordinary general meeting.
Shares of CLI were up 0.3 per cent or S$0.01 to S$3.68 as at 9.10 am on Thursday, while units of CapitaLand India Trust were down 0.9 per cent or S$0.01 to S$1.12.
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