SINGAPORE – CapitaLand India Trust (CLINT) is set to expand its portfolio in Bangalore, with the acquisition of an office project through a forward purchase agreement.
CLINT has announced its plans to acquire a 1.13 million sq ft office project in Nagawara, Outer Ring Road, Bangalore for $233.6 million. This acquisition will be carried out through a forward purchase agreement with Maia Estates Offices, which will result in an increase in earnings and distributions for unitholders. On a stabilized basis, the net profit is expected to reach $7.7 million, and the distribution per unit is projected to rise from 6.84 cents to 6.98 cents.
The office project is part of a mixed-used development that includes office and retail space. As part of the forward purchase agreement, CLINT will provide full funding for the development of the office project and will receive interest on the funding at a higher rate than its borrowing cost.
For those interested in investing in overseas properties, CLINT offers a variety of options to explore. Upon completion of the development, which is expected in 1H2030, CLINT will acquire the office space, while Maia will retain the retail portion. This will effectively increase the operational area of CLINT’s portfolio in Bangalore from 8.7 million sq ft to 9.9 million sq ft.
In addition to this new acquisition, CLINT has other properties under development in Bangalore, including two office buildings in Gardencity, an IT Park at Hebbal, and another IT park at International Tech Park Bangalore (ITPB).
With the addition of the office project, the total portfolio size of CLINT, including its committed investment pipeline, is expected to increase by 4.0% from 30.2 million sq ft to 31.47 million sq ft.
According to CEO of CLINT, Gauri Shankar Nagabhushanam, “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 area is the largest office micro-market in Bangalore, and with the addition of this prime office property, we will be able to provide our tenants with a larger offering of premium office space options across key micro-markets in the city.”
On 21 February, units in CLINT closed flat at $1. The trust is committed to expanding its portfolio in India and continues to seek out opportunities for growth and development.