The purchase would enhance CLINT’s current Bangalore portfolio, which includes the International Tech Park Bangalore
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CapitaLand India Trust has entered into a forward purchase agreement to buy one million square feet IT park located in India
The project, which is located on the Bangalore’s Outer Ring Road, comprises of two buildings that have an area net of leaseable of 1.5 million square feet.
In the terms of the agreement, CLINT will provide around 201 million dollars to finance the development, and afterward acquire some of the structures that have a an overall NLA of 1 million square feet. Other 0.5 million square feet will be held as a landowner’s property.
The whole project will run between 1Q2023 and 4Q2025. CLINT will fund the initial twelve months using internal resources. The company will then borrow money to keep the project funded beginning in 1H2024 and onwards.
“The acquisition is expected to provide opportunities to increase our involvement on Outer Ring Road, India’s largest office micro-marketthat has proven to be resilient during the Covid-19 epidemic,” states Sanjeev Dasgupta, CEO of CLINT’s managing director.
“With this acquisition we’ll be able to provide our tenants more options for office space across the most important markets in Bangalore,” he adds.
CLINT refers to CLINT describes the Outer Ring Road as Bangalore’s largest office micro-market.
This development is situated next to a new metro station, and is located in the vicinity of established business parks, hospitality development, retail and healthcare.
After the completion of this project the area of CLINT’s operation in Bangalore will be increased from 6.9 million square feet to 7.9 million square feet. The size of its portfolio which includes the pipeline of committed investments which will grow in 3.6% from 28 million sq feet to 29 million sq feet.
CLINT believes that this arrangement “will increase the profits and distributions to unitholders.”