CapitaLand India Trust Selling Business Parks in Chennai, Hyderabad for $124M

Singapore’s CapitaLand India Trust is set to make its first-ever divestment, with the SGX-listed REIT on Thursday announcing a deal to sell two IT parks for a total of INR 11 billion ($124.4 million).

The sale of CyberVale in Chennai and CyberPearl in Hyderabad to an unrelated third party marks the inaugural disposal since CLINT’s listing in 2007, the trust’s manager said Thursday in a release. The assets have a combined built area of 1.4 million square feet (130,064 square metres) and are changing hands at an enterprise value 3 percent higher than an independent valuation, said the manager, which is owned by Temasek-controlled CapitaLand Investment.

CLINT framed the sale as part of an ongoing strategy to improve its portfolio by monetising non-core assets with limited strategic value and recycling capital into higher-yielding and accretive investments.

“The successful divestment of CyberVale and CyberPearl marks the commencement of our capital recycling strategy to optimise CLINT’s portfolio and enhance our financial agility,” said Gauri Shankar Nagabhushanam, CEO of the trust’s manager.

Balance Sheet Boost

CyberVale comprises an 800,000 square foot IT special economic zone and a 200,000 square foot free trade warehousing zone in Chennai’s Mahindra World City, while CyberPearl is a 400,000 square foot IT park in Hyderabad’s HITEC City.

The disposal will reduce CLINT’s total completed floor area across the portfolio to 21.2 million square feet. The trust’s holdings will continue to include International Tech Park Chennai, three industrial projects and a data centre under development in the Tamil Nadu capital. CLINT will also retain International Tech Park Hyderabad, aVance Hyderabad, and a data centre under development in Telangana’s capital.

A net gain of INR 364 million is expected from the sale. No settlement date was announced.

“By divesting these two assets, we have the option to utilise the proceeds to strengthen our balance sheet through debt repayment, recycle capital into higher-yielding projects to further grow CLINT’s portfolio, and enhance distributions to unitholders,” Nagabhushanam said.

Buying Forward in Bengaluru

CLINT’s first divestment comes as the trust ramps up activity in India’s Bengaluru after the tech hub saw its highest-ever leasing for Grade A office space in 2024.

In February, CLINT agreed to the forward purchase of an office project at a Bengaluru commercial complex developed by local builder Maia Group. Upon completion and stabilisation, CLINT plans to buy the project’s 1.13 million square feet of office space in the first half of 2030 for INR 14.7 billion ($170 million), with Maia retaining the retail section of the complex.

The trust also acquired an IT park in Bengaluru’s Outer Ring Road in 2023 in a forward purchase valued at $152 million. CLINT’s other properties under development in the market are two office buildings at Gardencity, an IT park in Hebbal with a net leasable area of 1.65 million square feet; Ebisu, a 1 million square foot IT park in the Outer Ring Road; and a data centre.

CLINT units were unchanged in price in Thursday trading at S$1.17.