Building 2 (left) and Building 1 in Aurum Q Parc (Image: CapitaLand)
A CapitaLand-sponsored investment trust has acquired its second Mumbai area office building following completion of the 800,000 square foot (74,322 square metre) property, according to an announcement on Monday.
CapitaLand India Trust (CLINT) completed its purchase of building Q2 in the Aurum Q Parc IT special economic zone in Navi Mumbai for a consideration of approximately INR 6.76 billion ($80.8 million), with an additional INR 300 million in deferred compensation expected to be paid upon achievement of future milestones, the trust’s manager said.
“The acquisition of Building Q2 expands CLINT’s portfolio in Navi Mumbai, a thriving hub for IT and related services,” Sanjeev Dasgupta, chief executive of CapitaLand India Trust Management said. “We have seen strong leasing interest and rental growth in Building Q2 due to demand from multinational companies seeking a convenient base, as Aurum Q Parc is in close proximity to transport networks such as Ghansoli railway station and the upcoming international airport in Navi Mumbai.”
The property is already fully leased to local companies including ICICI Bank, Axis Securities Shriram Finance and drone maker ideaForge Technology, as well as to international giants Mizuho Bank, logistics operator DP World and engineering firm John Cockerill.
Forward Purchase Deal Fulfilled
The Singapore-listed trust is buying building Q2 in Aurum Q Parc from local developer Aurum Ventures as the second phase in a forward purchase agreement signed in 2018.
Sanjeev Dasgupta, chief executive of CapitaLand India Trust Management (Image: CapitaLand)
CLINT took possession of building Q1 in the IT special economic zone complex for $47 million in 2021, after that 600,000 square foot property had been fully leased. Phase one in the project now has a committed occupancy level of 94 percent, according to the statement on Monday.
Including the deferred compensation, the trust is paying INR 8,825 per square foot for building Q2, with Dasgupta vowing that, “CLINT will continue to capitalise on the growing demand for business parks and remains committed to delivering sustainable returns to our Unitholders.”
The acquisition brings CLINT’s Mumbai area holdings to one logistics park and a data centre development project, in addition to the two-building Aurum Q Parc campus.
Adding Business Parks
Together, the two phases of Aurum Q Parc add 1.47 million square feet to CLINT’s portfolio, enlarging the collection of properties by 4 percent to a total of approximately 21.8 million square feet. The trust’s assets under management stood at S$3.1 billion ($2.3 billion) as of 31 March.
The completion of the Navi Mumbai acquisition comes just over two months after CLINT agreed to a forward purchase agreement with long-time partner Phoenix Group for 2.5 million square feet of office properties in HITEC City, a government-backed district focused which has become a tech hub in the capital of Telangana state.
In February of this year the trust agreed to acquire a trio of industrial development projects in Greater Chennai from local builder Casa Grande Group for a total of INR 2.68 billion, with those assets also being acquired on a forward purchase basis.
Including this latest acquisition, CLINT’s portfolio includes 10 IT parks, three industrial facilities, one logistics park and four data centre development projects in India, with its completed assets spread across Bangalore, Chennai, Hyderabad, Pune, and Mumbai.
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