Bangalore development worth $201 million was purchased in advance by CapitaLand India Trust

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CapitaLand India Trust has entered into a forward purchase agreement to buy 1 million square feet of IT park located in India

The project, which is located on the Bangalore’s Outer Ring Road, comprises of two buildings that have an area net of leaseable of 1.5 million square feet.

According to the terms of the contract, CLINT will provide around 201 million dollars to finance the development, and afterward acquire some of the structures, with a the total NLA of 1 million sq feet. In the remaining 0.5 million square feet will be held in the hands of landowners.

The entire development will run between 1Q2023 and 4Q2025. CLINT intends to finance the initial year of this project using internal resources. It will then take out loans to fund the project beginning in 1H2024 and onwards.

“The acquisition is expected to provide the opportunity for us to expand our footprint on Outer Ring Road, India’s largest office micro-marketthat has shown resilience during the Covid-19 epidemic,” states Sanjeev Dasgupta, CEO of CLINT’s managing director.

“With this acquisition that we have made, we’ll be able to provide our tenants more options for office space across the major markets of Bangalore,” he adds.

CLINT says The Outer Ring Road as Bangalore’s largest office micro-market.

This development is situated next to a planned metro station. It is also located in the vicinity of already existing business parks, hotels development, retail and healthcare.

After the completion of this project The area that CLINT operates in Bangalore will grow from 6.9 million square feet to 7.9 million square feet. The size of its portfolio which includes the pipeline of committed investments which will grow to 3.6% from 28 million sq feet to 29 million square feet.

CLINT believes that this deal “will increase the profits and distributions to unitholders.”