CapitaLand India Trust (CLINT) has announced its plan to acquire an office project in Nagawara, Outer Ring Road, Bangalore, for $233.6 million through a forward purchase agreement with Maia Estates Offices. This acquisition of the 1.13 million square feet office project is expected to benefit unitholders by improving earnings and distributions. On a stabilized basis, the net profit is estimated to reach $7.7 million, while the distribution per unit is expected to rise from 6.84 cents to 6.98 cents.
The office project is a part of a mixed-use development that includes both office and retail space. Under 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.
If you are interested in investing in properties overseas, there are plenty of projects available for sale around the world. As per the agreement, CLINT will acquire the office space in the first half of 2030 upon completion of the development, while Maia will retain the retail portion. This will increase the operational area of CLINT’s portfolio in Bangalore from 8.7 million square feet to 9.9 million square feet.
CLINT also has two ongoing office building projects in Gardencity, an IT Park at Hebbal, and an IT park at ITPB in Bangalore. With the addition of the office project, the total portfolio size of CLINT, including the committed investment pipeline, will increase by 4.0% from approximately 30.2 million square feet to approximately 31.47 million square feet.
“The acquisition of this office project in a prime location will further strengthen CLINT’s presence in Bangalore, one of India’s top office markets. In 2024, Bangalore saw the highest leasing levels for Grade A office space, and ORR is the largest office micro-market in the city. By adding this premium office property to our portfolio, we will be able to offer our tenants a wider range of high-quality office spaces in key micro-markets in Bangalore,” says Gauri Shankar Nagabhushanam, CEO of CLINT.
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On Feb 21, shares of CLINT closed at $1, without any change. Other related news includes CLINT’s proposal to acquire International Tech Park Pune from its subsidiary and joint venture partner for $221.9 million and CLINT’s partnership with India developer L&T Realty to develop 6 million square feet of prime offices in India.