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 acquisition will be made through a forward purchase agreement with Maia Estates Offices.
The group believes that the addition of this 1.13 million sq ft office project to their portfolio will not only improve their earnings but also benefit their unitholders. On a stabilized basis, CLINT is expecting a net profit of $7.7 million while the distribution per unit is expected to increase from 6.84 cents to 6.98 cents.
The office project is a part of a mixed-use development that also includes retail space. As per the forward purchase agreement, CLINT will be fully funding the development of the office project and in return, will receive interest on the funding at a rate higher than their borrowing cost.
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Upon completion of the development, CLINT is expected to acquire the office space in the first half of 2030 while Maia will retain the retail portion. This will result in an increase in the operational area of CLINT’s portfolio in Bangalore from 8.7 million sq ft to 9.9 million sq ft.
CLINT 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 this office project, CLINT’s portfolio size, including their committed investment pipeline, will increase by 4.0% from approximately 30.2 million sq ft to 31.47 million sq ft.
“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 the highest ever leasing levels for Grade A office space. Outer Ring Road is the largest office micro-market in Bangalore. With the addition of this prime office property, we will be able to offer our tenants a larger selection of premium office spaces across key micro-markets in Bangalore,” says Gauri Shankar Nagabhushanam, CEO of CLINT.
On Feb 21, units in CLINT closed flat at $1.
(CapitaLand India Trust in $201 million forward purchase of development in Bangalore)
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CLINT has proposed to acquire International Tech Park Pune from their subsidiary CLI and their JV partner for $221.9 million. Additionally, CapitaLand India Trust and India developer L&T Realty have joined forces to develop 6 million sq ft of prime offices in India.