CapitaLand India Trust to acquire Ascendas IT Park-Pune for Rs 13.5 billion
NEW DELHI: CapitaLand Investment‘s (CLI) wholly-owned subsidiary Ascendas India Development VII and its joint venture partner Maharashtra Industrial Development Corporation (MIDC) have entered into separate agreements with CapitaLand India Trust (CLINT) to divest their respective 78.5% and 21.5% shareholding in Ascendas IT Park (Pune) to CLINT for approximately Rs 13.5 billion (Singapore $221.9 million), both the companies informed in separate media releases.
CapitaLand India Trust Management, as the trustee-manager of CLINT, entered into definitive agreements through its wholly-owned subsidiary, Ecospace IT Park for the proposed acquisition.
Ascendas IT Park (Pune) owns International Tech Park Pune in Hinjawadi (ITPP-H). The total sale consideration represents a premium of approximately 9% to CLI’s valuation for ITPP-H in December 2021.
The proposed divestment of ITPP-H is subject to CLINT’s unitholders’ approval at an extraordinary general meeting and is targeted to be completed by February 2023.
ITPP-H is an IT Special Economic Zone, developed on a 25-acre 99-year leasehold land. It has a total floor area of 2.3 million sq ft across four buildings and is close to 100% leased to prominent tenants. Post-divestment, CLI will continue to provide property and lease management services for ITPP-H to CLINT.
Jonathan Yap, CEO, Listed Funds, CLI, said, “With this transaction, CLI has announced gross divestments of S$2.9 billion year-to-date, close to our annual capital recycling target of S$3 billion. Almost 90% are divestments to our listed funds and private vehicles, demonstrating these platforms as key growth drivers for us. CLI has a pipeline of about S$10 billion of high-quality properties on our balance sheet, which we can potentially offer to our various fee income-generating listed funds and private vehicles The proposed divestment would increase our funds under management and fee-related earnings.”
The proposed divestment of ITPP-H to CLINT follows CLI’s recent proposed divestment of Queensbay Mall in Penang to CapitaLand Malaysia Trust. CLI’s other divestments to its listed funds and private vehicles include CapitaSky, a Grade A office building in Singapore, to CapitaLand Integrated Commercial Trust and CapitaLand Open End Real Estate Fund in March 2022; and Ascendas i-Link, a business park in Shanghai, to its China Business Park Core RMB Fund I in November 2022.