for $adb1.1 billion
CapitaLand India Trust (CLINT) has announced its plans to acquire an office project in Bangalore, India for $233.6 million. This acquisition will be made through a forward purchase agreement with Maia Estates Offices.
The group believes that the acquisition of this 1.13 million sq ft office project will have a positive impact on earnings and distributions for unitholders. On a stabilized basis, CLINT is forecasted to earn 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-use development that includes office and retail space. As part 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.
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Upon the completion of the project, expected in the first half of 2030, CLINT will acquire the office space while Maia will retain the retail portion. This will increase CLINT’s operational area in Bangalore to 9.9 million sq ft, up from the current 8.7 million sq ft. The other properties under development in Bangalore are two office buildings in Gardencity, an IT Park at Hebbal, and an IT park at ITPB.
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With this new acquisition, CLINT’s portfolio, including the committed investment pipeline, will increase by 4.0% from 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 had the highest ever leasing levels for Grade A office space. The Outer Ring Road (ORR) micro-market is the largest office 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 in key micro-markets of Bangalore,” says Gauri Shankar Nagabhushanam, CEO of CLINT.
On Feb 21, units in CLINT closed at $1.