CapitaLand India Trust (CLINT) announced its plans to acquire an office project located in Nagawara, Outer Ring Road, Bangalore, for a total consideration of $233.6 million. The acquisition will be made through a forward purchase agreement with Maia Estates Offices. This move is expected to boost earnings and distributions for unitholders, with a projected net profit of $7.7 million on a stabilized basis and an increase in distribution per unit from 6.84 cents to 6.98 cents.
The office project is part of a mixed-use development that includes office and retail space. Under the terms of the forward purchase agreement, CLINT will fully fund the development of the office project and receive higher interest rates on the funding compared to its borrowing cost.
For those interested in investing in overseas properties, there are many projects currently available for sale around the world. With the completion of the development, CLINT is expected to take ownership of the office space in the first half of 2030 while Maia will retain the retail portion. This will increase the operational area of CLINT’s portfolio in Bangalore from 8.7 million sq ft to 9.9 million sq ft.
In addition to the office project, CLINT is also developing two office buildings in Gardencity, an IT Park at Hebbal, and an IT Park at ITPB in Bangalore. With the acquisition, CLINT’s total portfolio size, including committed investment pipeline, will see a 4.0% increase from approximately 30.2 million sq ft to approximately 31.47 million sq ft.
According to CEO of CLINT, Gauri Shankar Nagabhushanam, “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 recorded its highest ever leasing levels for Grade A office space. Outer Ring Road remains the largest office micro-market in Bangalore, making this acquisition a valuable addition to our portfolio. It will allow us to offer our tenants a wider range of premium office space options in key micro-markets in Bangalore.”
On Feb 21, units in CLINT closed at $1, unchanged from the previous day.
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