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

CapitaLand India Trust (CLINT) has recently entered into a forward purchase agreement, with plans to acquire a one million sq ft IT park in Bangalore’s Outer Ring Road. The project comprises of two buildings totalling 1.5 million sq ft in net leasable area, with CLINT providing around $201 million to fund the development of one of the buildings, which holds the one million sq ft of space. The other 0.5 million sq ft will remain in the ownership of the landowners.

The development will last from 1Q2023 to 4Q2025, with CLINT dedicating their internal resources to funding the first 12 months. 1H2024 onward will then be funded through a loan. CLINT’s manager’s CEO, Sanjeev Dasgupta, notes how this opportunity will “establish [their] presence in Outer Ring Road, India’s largest office micro-market”, and offer their tenants more office space Media Circle Condo options.

CLINT describes the Outer Ring Road as Bangalore’s largest office micro-market, with this upcoming development situated near an upcoming metro station and surrounded by business parks, various hospitality, retail and healthcare developments. Upon completion, CLINT’s area under operation in Bangalore will have increased to 7.9 million sq ft, and their portfolio size will have increased by 3.6% to 29 million sq ft. CLINT believe this move “will improve the earnings and distributions for unitholders.”