CapitaLand India Trust (CLINT) has announced plans to acquire a new office project located in Nagawara, Outer Ring Road, Bangalore for $233.6 million. The acquisition will be made through a forward purchase agreement with Maia Estates Offices.
According to CLINT, this acquisition of a 1.13 million sq ft office project is expected to have a positive impact on the earnings and distributions for unitholders. The trust forecasts a net profit of $7.7 million on a stabilized basis, with distribution per unit increasing from 6.84 cents to 6.98 cents.
The office project is part of a mixed-use development that includes both office and retail spaces. 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.
For investors looking to diversify their portfolio with overseas properties, CLINT offers a variety of projects for sale around the world.
Upon completion of the development, CLINT is expected to acquire the office space in 1H2030, while Maia Estates will retain the retail portion. This acquisition will increase the operational area of CLINT’s portfolio in Bangalore to 9.9 million sq ft, up from the current 8.7 million sq ft.
Other properties under development in Bangalore for CLINT include two office buildings in Gardencity, an IT Park at Hebbal, and another IT Park at ITPB.
With the addition of the new office project, CLINT’s portfolio size will increase by 4%, from approximately 30.2 million sq ft to approximately 31.47 million sq ft.
Commenting on the acquisition, CLINT CEO Gauri Shankar Nagabhushanam said, “The strategic location of this office project will further strengthen CLINT’s presence in Bangalore, one of India’s most prominent office markets. In 2024, Bangalore saw record-high leasing levels for Grade A office space. The Outer Ring Road is currently the largest office micro-market in Bangalore. By adding this prime office property to our portfolio, we will be able to offer our tenants a wider selection of premium office space options across key micro-markets in Bangalore.”
On Feb 21, units in CLINT closed flat at $1.