CapitaLand India Trust to Acquire 2.5M Sqft IT Buildings in Hyderabad
Hyderabad: CapitaLand India Trust (CLINT), a property trust listed on the Singapore Exchange Securities Trading Limited, has entered into a forward purchase agreement with Phoenix Group to acquire IT buildings with a total leasable area of 2.5 million sqft in Hitec City in Hyderabad.
The acquisition of the strategically located assets is expected to increase CLlNT’s earnings and distributions for unit holders.
As part of the forward purchase arrangement, CLINT will provide funding of Rs 215 crore (S$34.68 million) to refinance the existing loan and receive interest on the funding at a rate which is higher than its borrowing cost. CLINT will also provide funding in future towards development of the buildings and acquire the buildings at a price to be determined as and when each building is constructed and leased up to 90%.
“The forward purchase allows us to secure prime assets that will further strengthen our presence in Hyderabad, which has strong leasing demand from multinational companies. The buildings are situated within the city’s prime IT Corridor in Hitec City and CLINT is well established in this location with a portfolio of approximately 5.2 million sqft with high levels of occupancy,” said Sanjeev Dasgupta, chief executive officer of CapitaLand India Trust Management Pte. Ltd.
CLINT has a long-standing partnership with Phoenix Group since 2011, having acquired five buildings with approximately 2.1 million sqft of total leasable area through a forward purchase agreement. The five buildings are located within CLINT’s business park, aVance Hyderabad. It plans to acquire another two buildings (aVance 5 and aVance A1) in aVance Hyderabad from Phoenix Group within the next 18 months, further enhancing CLINT’s portfolio.
CLINT’s presence in Hyderabad CLINT’s portfolio in Hyderabad currently comprises three business parks: aVance Hyderabad, CyberPearl and International Tech Park Hyderabad (ITPH). CLINT is also developing a data centre in ITPH, which is expected to be completed in 2025, a release said.
