Capitaland India Trust Acquiring 113 Million Sq Ft Office Space Bangalore 2336 Mil
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India L&T Realty EstateOne Business Park in Mumbai, IndiaAiming to expand its presence in India, CapitaLand India Trust (CLINT) has announced its plans to acquire an office project in Nagawara, Outer Ring Road, Bangalore for a consideration of $233.6 million. This acquisition will be carried out through a forward purchase agreement with Maia Estates Offices, and is expected to improve CLINT’s earnings and distributions for its unitholders.
CLINT’s proposed acquisition will add a 1.13 million sq ft office project to its portfolio, which is part of a mixed-use development comprising office and retail space. The acquisition will be funded by CLINT, and the trust will receive interest on the funding at a higher rate than its borrowing cost.
According to the group, the net profit on a stabilized basis for this project is forecast to be $7.7 million, while the distribution per unit is expected to increase from 6.84 cents to 6.98 cents. This is a positive development for CLINT’s unitholders, as it will contribute to the trust’s future growth.
Upon completion of the development, which is expected in the first half of 2030, CLINT will acquire the office space and Maia Estates Offices will retain the retail portion. This will increase the operational area of CLINT’s portfolio in Bangalore to 9.9 million sq ft, from the current 8.7 million sq ft.
In addition to this new acquisition, CLINT also has several other properties under development in Bangalore, including two office buildings in Gardencity, an IT Park at Hebbal, and an IT park at ITPB. These projects are expected to further enhance the trust’s portfolio and strengthen its presence in the Indian market.
With the addition of this prime office property, CLINT’s portfolio size will increase by 4.0% from approximately 30.2 million sq ft to 31.47 million sq ft, including its committed investment pipeline. This will allow the trust to provide its tenants with a larger offering of premium office space options across key micro-markets in Bangalore.
CEO of CLINT, Gauri Shankar Nagabhushanam, expresses excitement about the acquisition, stating that it will further strengthen the trust’s presence in Bangalore, one of India’s most prominent office markets. He also notes that in 2024, Bangalore had the highest ever leasing levels for Grade A office space, making the ORR the largest office micro-market in the city.
The trust’s units closed at $1 on Feb 21. As CLINT continues to expand its presence in India, it remains a promising option for investors looking to diversify their portfolio with overseas properties. Interested in exploring projects available for sale around the world? Visit the trust’s website to learn more.