CapitaLand India Trust (CLINT) has announced a forward purchase agreement with Phoenix Group to acquire IT buildings encompassing 2.5 million square feet in HITEC City, a prominent IT and office hub in Hyderabad.
This strategic acquisition is poised to bolster earnings and distributions for CLINT’s unitholders.
The acquired assets, which are expected to generate a pro forma net profit of approximately S$4.5 million on a stabilised basis, will slightly increase the distribution per unit from 6.45 cents to 6.47 cents.
As part of the agreement, CLINT will initially provide INR2.15 billion (approximately S$34.68 million) to refinance existing loans and will receive interest at a rate surpassing its borrowing costs.
Additional funding will be provided by CLINT for the development of the buildings, which will be purchased upon completion and leasing of up to 90%.
Sanjeev Dasgupta, CEO of CapitaLand India Trust Management Pte. Ltd., highlighted the significance of the deal, stating, “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.”
This acquisition further solidifies CLINT’s long-standing partnership with Phoenix Group, which began in 2011.
To date, CLINT has acquired five buildings with a total leasable area of 2.1 million square feet through similar agreements.
The trust plans to acquire two more buildings within the next 18 months, enhancing its substantial portfolio in Hyderabad that includes three business parks and a developing data centre expected to be completed in 2025.
PEVCJournal.com