CapitaLand India Trust in $201 million forward purchase of development in Bangalore

CLINT India Trust has entered into a forward purchase agreement for a 1 million sq ft IT park located on Bangalore’s Outer Ring Road. The project consists of 2 buildings with a total net leasable area of 1.5 million sq ft, with CLINT taking ownership of the larger building with 1 million sq ft and the landowners retaining the other 0.5 million sq ft. The development is expected to complete in 4Q2025 and CLINT plans to finance the first 12 months with internal resources, followed Senja Close EC by borrowing for the remainder.

Sanjeev Dasgupta, CEO of CLINT’s manager, notes that the acquisition will provide an excellent opportunity to establish a presence in Outer Ring Road – India’s largest office micro-market – which “has demonstrated resilient performance during the Covid-19 pandemic”. He further adds that they will be able to provide more office space options across key markets in the city.

The development site is situated right next to an upcoming metro station and surrounded by existing business parks, hospitality, retail and healthcare developments. Upon completion, CLINT’s total area under operation in Bangalore will increase from 6.9 million sq ft to 7.9 million sq ft and its committed investment portfolio will also see a growth of 3.6 percent from 28 million sq ft to 29 million sq ft. CLINT projects that this deal will improve the earning and distributions for its unitholders.