CapitaLand India Trust (CLINT) has announced its plans to acquire an office project in Nagawara, Outer Ring Road, Bangalore for a total of $233.6 million. This acquisition will be carried out through a forward purchase agreement with Maia Estates Offices.
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According to CLINT, this acquisition is expected to have a positive impact on its earnings and distributions for unitholders. Upon completion, the net profit is forecasted to be $7.7 million on a stabilized basis, and the distribution per unit is expected to increase from 6.84 cents to 6.98 cents.
Located in a mixed-use development, the office project spans over 1.13 million sq ft and includes office and retail space. As per the terms of the forward purchase agreement, CLINT will fund the development of the office project entirely and receive interest on the funding at a higher rate than its borrowing cost.
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 add 9.9 million sq ft of operational area to CLINT’s portfolio in Bangalore, increasing it from the current 8.7 million sq ft.
Other properties under development by CLINT in Bangalore include two office buildings in Gardencity, an IT Park at Hebbal, and another IT park at ITPB.
This acquisition will increase CLINT’s portfolio by 4.0%, bringing it to approximately 31.47 million sq ft, including its committed investment pipeline, from the existing 30.2 million sq ft.
Gauri Shankar Nagabhushanam, CEO of CLINT, commented, “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 at $1. Looking to invest in overseas properties? Explore projects available for sale around the world.
This news follows CLINT’s recent announcement to acquire International Tech Park Pune from a subsidiary of CapitaLand and its joint venture partner for $221.9 million. Additionally, the India-based real estate developer L&T Realty has signed a development management agreement with CLINT to collaborate on developing six million sq ft of premium offices in India.