CapitaLand India Trust Management Pte. Ltd., the Trustee-Manager of CapitaLand India Trust (“CLINT”), is pleased to announce that it has entered into a forward purchase agreement to acquire a 1.0 million sq ft IT Park located at Outer Ring Road, Bangalore, India (the “Transaction”). CLINT will provide funding for the development of the project as part of the forward purchase arrangement.
About the Project
The project comprises two buildings with an aggregate net leasable area of approximately 1.5 million sq ft (the “Project”). CLINT proposes to fund the development of the Project and subsequently acquire a net leasable area of 1.0 million sq ft (“Building 1”). The remaining net leasable area of approximately 0.5 million sq ft (“Building 2”) will be retained by the landowners. The landowners have appointed CapitaLand Services (India) Private Limited (“CSIPL”) to oversee the design, development and leasing of the Project.
During the construction period, CLINT’s investment in the construction of the Project will be through debt and internal resources. The forward purchase acquisition will be executed after completion of the construction of Building 1 and is subject to the receipt of the occupancy certificate for Building 1 and the fulfillment of other key conditions.
Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition will provide an opportunity to establish our presence in Outer Ring Road, India’s largest office micro-market, which has demonstrated resilient performance during the COVID-19 pandemic. With this acquisition, we will be able to offer our tenants even more office space options across the key markets in Bangalore.”