NEW DELHI: CapitaLand India Trust (CLINT) has entered into a forward purchase agreement with MAIA Estates Offices, an affiliate of MAIA Group, to acquire an office project – The Beacon situated at Nagawara, Outer Ring Road (ORR), Bengaluru.
Net profit from the acquisition is forecasted to be approximately S$7.7 million, on a stabilised basis, while distribution per unit is expected to increase from 6.84 cents to 6.96 cents, based on projected financials.
The company will invest about Rs 1,000 crore in the project. During the construction period, CLINT’s investment in the project will be through divestment proceeds over the near term, debt and internal resources. The forward purchase agreement will be executed upon completion of the office project construction and is subject to receipt of the occupancy certificate and the fulfilment of other key conditions.
Mayank Ruia, founder and CEO, MAIA Estates said, “This development is set to create new standards for modern office spaces, where design excellence, sustainability, and technology, converge on the magnificent Nagavara lakefront.”
Sitting on a land parcel of approximately 4.6 acres, the office project is part of a mixed-used development with a total net leasable area of approximately 1.36 million sq ft. As part of the agreement, CLINT will fully fund the development of the office project and receive interest on the funding at a rate which is higher than its borrowing cost.
The project will offer 1.2 million sq ft of commercial space and 200,000 sq ft of F&B retail development.
Upon completion of the development and stabilisation, CLINT is expected to acquire the office space in H1 2030, while Maia Group will retain the retail portion. The purchase price of the office space is estimated to be Rs 14,717 million (S$233.6 million).
Gauri Shankar Nagabhushanam, chief executive officer of CapitaLand India Trust, the Trustee-Manager of CLINT, said, “With the addition of this prime office property, we will be able to provide our tenants with a larger offering of premium office space options across key micro-markets in Bangalore. We will leverage our deep market knowledge and tenant relationships to drive occupancy for the office project.”
Upon completion, the office project will increase the operational area of company’s portfolio in Bengaluru from 8.7 million sq ft to 9.9 million sq ft. In addition to the office project and International Tech Park Bangalore (ITPB), the company’s other properties under development in the city are two office buildings in Gardencity, an IT Park at Hebbal with a total net leasable area of up to 1.65 million sq ft; Ebisu, a one million-sq ft IT Park located at ORR and a data centre in ITPB.
With the acquisition of the office project, CLINT’s portfolio size inclusive of committed investment pipeline will increase by 4% from approximately 30.2 million sq ft to approximately 31.47 million sq ft.
Litmus acted as the strategic and financial advisor to the transaction.
