CapitaLand India Trust (CLINT) has announced its plans to acquire a new office project in Nagawara, Outer Ring Road, Bangalore, for $233.6 million. This will be accomplished through a forward purchase agreement with Maia Estates Offices.
The group believes that the acquisition of this 1.13 million sq ft office project will greatly benefit its unitholders, as it is expected to increase both earnings and distributions. The project is expected to generate a net profit of $7.7 million once it reaches stabilization, and distribution per unit is projected to rise from 6.84 cents to 6.98 cents.
The office project is part of a mixed-use development that includes both office and retail space. As part of the forward purchase agreement, CLINT will fully fund the development of the office project and will receive interest on the funding at a higher rate than its borrowing cost.
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Once the development is complete, CLINT is expected to acquire the office space in the first half of 2030, while Maia will retain the retail portion. This will bring the operational area of CLINT’s portfolio in Bangalore to 9.9 million sq ft, up from its current 8.7 million sq ft.
CLINT also has two other properties under development in Bangalore: two office buildings in Gardencity, an IT Park at Hebbal, and an IT park at ITPB.
With the addition of this office project, the total portfolio size of CLINT, including committed investment pipeline, will increase by 4.0% from approximately 30.2 million sq ft to approximately 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, and the ORR is the largest office micro-market in the city. With this prime office property, CLINT will be able to provide its tenants with a wider selection of premium office space options across key micro-markets in Bangalore.
On Feb 21, units in CLINT closed flat at $1.