, starting with Mumbai’s Powai district
CapitaLand India Trust (CLINT) is pursuing the acquisition of a new office development in Nagawara, Outer Ring Road, Bangalore, for a total sum of $233.6 million. The trust has entered into a forward purchase agreement with Maia Estates Offices for this purpose.
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The acquisition of this 1.13 million sq ft office project is expected to have a positive impact on the earnings and distributions of CLINT’s unitholders. It is anticipated that the net profit on a stabilized basis will reach $7.7 million, while the distribution per unit is expected to rise from 6.84 cents to 6.98 cents.
This office project is part of a mixed-use development that includes both office and retail space. Under the terms of 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. This arrangement will enable the trust to increase its operational area and generate higher returns.
Upon the completion of the development, which is expected in the first half of 2030, CLINT will acquire the office space while Maia will retain the retail portion. This will result in an increase of approximately 1.2 million sq ft in the operational area of CLINT’s portfolio in Bangalore, bringing the total to 9.9 million sq ft from the current 8.7 million sq ft.
CLINT is also currently developing two office buildings in Gardencity, an IT Park at Hebbal, and another IT Park at ITPB in Bangalore. With the addition of this office project, the total portfolio size of the trust, inclusive of committed investment pipeline, will increase by 4.0% from around 30.2 million sq ft to approximately 31.47 million sq ft.
Gauri Shankar Nagabhushanam, CEO of CLINT, expressed excitement about the acquisition, stating that it will further strengthen the trust’s presence in Bangalore, one of India’s primary office markets. In 2024, Bangalore experienced its highest ever leasing levels for Grade A office space, with the Outer Ring Road being the largest office micro-market in the city. This acquisition will allow CLINT to offer its tenants a wider variety of premium office space options in key micro-markets of Bangalore.
On Feb 21, units in CLINT closed flat at $1. With this latest development, the trust continues to demonstrate its commitment to acquiring prime properties and expanding its presence in India’s thriving office market.