CapitaLand Investment JV Selling Pune Tech Park to India Trust for $160M

A joint venture of Singapore-based CapitaLand Investment and Maharashtra Industrial Development Corporation has agreed to sell its entire stake in a Pune business park to CapitaLand India Trust for INR 13.5 billion ($160 million).

The SGX-listed fund management arm of property giant CapitaLand and the Maharashtra state agency will divest of their respective 78.5 and 21.5 percent stakes in International Tech Park Pune in Hinjawadi, a four-building campus with a total floor area of 2.3 million square feet (213,677 square metres).

The proposed disposal is subject to CLINT unitholders’ approval at an extraordinary general meeting and is targeted to be completed by February, CapitaLand Investment said Thursday in a release.

“CLI’s proposed divestment of ITPP-H to CLINT is in line with our strategy to provide quality, stable-performing assets to support the growth of our sponsored trusts,” said Jonathan Yap, CEO of listed funds at CapitaLand Investment. “Adding another top-class IT park to CLINT’s strong portfolio of eight IT parks enables CLI to participate in CLINT’s growth in India, which is one of CLI’s core markets.”

Marquee Tenants

ITPP-H is situated on 25 acres (10.1 hectares) of 99-year leasehold land in an IT special economic zone. The park is nearly 100 percent leased to tenants including Infosys, Synechron Technologies and Tata Consultancy Services.

Weighted average lease expiry at the property is 3.4 years. CapitaLand Investment will continue to provide property and leasing management services for ITPP-H to CLINT, which already has 1.5 million square feet of net lettable area in Pune.

SGX-listed CLINT said the proposed acquisition is part of a planned pipeline of CapitaLand projects that will enable the trust to create further scale in its portfolio, which currently has 11 assets under management valued at S$2.5 billion ($1.9 billion).

“The proposed acquisition adds a high-quality asset developed by the Sponsor into the CLINT portfolio,” CLINT CEO Sanjeev Dasgupta said in a separate release. “The marquee tenant profile with high level of occupancy will add substantial scale to the CLINT portfolio.”

Server Sheds in Focus

In addition to its tech parks and industrial assets, CLINT is eyeing three data centre projects, including a 55-megawatt Chennai facility announced in mid-December.

The trust plans to invest INR 19.4 billion ($230 million) to acquire and develop the freehold site in Chennai’s Ambattur area in phases over the next four to five years.

Earlier this month, CLINT revealed a INR 12 billion ($155 million) commitment to build a data centre in Hyderabad, bringing the REIT its first server-hosting project in southern India after acquiring a greenfield site in Navi Mumbai last year with plans to invest INR 12 billion in a facility there.