Capitaland India Trust Acquiring 113 Million Sq Ft Office Space Bangalore 2336 Mil
CapitaLand India Trust acquires 16.7 mil sq ft of prime office space in major Indian city
CapitaLand India Trust (CLINT) has recently announced its plans to acquire an office project in Nagawara, Outer Ring Road, Bangalore, for $233.6 million. The trust will do this by entering a forward purchase agreement with Maia Estates Offices.
According to CLINT, this acquisition of a 1.13 million sq ft office project is expected to result in better earnings and distributions for unitholders. On a stabilized basis, the trust is forecasted to make a net profit of $7.7 million, while distribution per unit is expected to increase from 6.84 cents to 6.98 cents.
The office project is a part of a mixed-used development that also includes retail space. Under the terms of the forward purchase agreement, CLINT will fully fund the development of the office project and receive interest on the funding at a higher rate than its borrowing cost.
For those looking to invest in overseas properties, there are numerous projects available for sale around the world. However, CLINT is focusing on this particular office project and its potential benefits for shareholders.
Upon completion of the development, which is estimated to be in the first half of 2030, CLINT will acquire the office space while Maia will retain the retail portion. This will increase the operational area of CLINT’s portfolio in Bangalore to 9.9 million sq ft, up from its current 8.7 million sq ft.
Apart from this new acquisition, CLINT also has other properties under development in Bangalore, including two office buildings in Gardencity, an IT Park at Hebbal, and an IT Park at ITPB.
With the addition of the office project, CLINT’s portfolio size, including the committed investment pipeline, is expected to increase by 4.0% from 30.2 million sq ft to 31.47 million sq ft.
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Gauri Shankar Nagabhushanam, CEO of CLINT, stated, “The acquisition of this strategically located office project will further strengthen CLINT’s presence in Bangalore, one of India’s most prominent office markets. In 2024, Bangalore had the highest ever leasing levels for Grade A office space. ORR is the largest office micro-market in Bangalore. With the addition of this prime office property, we will be able to provide our tenants with a larger offering of premium office space options across key micro-markets in Bangalore.”
On Feb 21, units in CLINT closed flat at $1. This latest acquisition, along with CLINT’s other investments, showcases the trust’s objective of expanding its presence and portfolio in India.
As of now, CapitaLand India Trust (CLINT) has proposed to acquire the International Tech Park Pune from a subsidiary of CapitaLand India (CLI) and its joint venture partner for $221.9 million. In addition, CLINT has also entered a partnership with CLI’s subsidiary and Indian developer L&T Realty, to develop 6 million sq ft of prime offices in India. Furthermore, the trust has also acquired 16.7 million sq ft of prime office space in a major Indian city, reaffirming its focus on increasing its presence in India.