Singapore-based real estate investment trust CapitaLand India Trust (CLINT) has announced its plans to acquire an office project in Nagawara, Outer Ring Road, Bangalore, for a total of $233.6 million. This acquisition will be carried out through a forward purchase agreement with Maia Estates Offices.
According to CLINT, acquiring this 1.13 million sq ft office project is expected to have a positive impact on the earnings and distributions for its unitholders. The trust projects a net profit of $7.7 million on a stabilized basis, while distribution per unit is expected to increase from 6.84 cents to 6.98 cents.
The office project is a 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.
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Once the development is complete, CLINT is expected to acquire the office space in the first half of 2030, while Maia will retain the retail portion. This will add approximately 1.13 million sq ft of operational area to CLINT’s portfolio in Bangalore, bringing the total to 9.9 million sq ft, up from the current 8.7 million sq ft.
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CLINT’s other ongoing projects in Bangalore include two office buildings in Gardencity, an IT Park at Hebbal, and an IT park at ITPB.
With the addition of this office project, CLINT’s portfolio size, including the committed investment pipeline, will increase by 4.0%, from approximately 30.2 million sq ft to approximately 31.47 million sq ft.
Commenting on the acquisition, CLINT CEO Gauri Shankar Nagabhushanam said, “The acquisition of this strategically located office project will further strengthen CLINT’s presence in Bangalore, one of India’s most prominent office markets. In 2024, Bangalore recorded its highest ever leasing levels for Grade A office space. Outer Ring Road is the largest office micro-market in Bangalore, and 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 the city.”
As of February 21, units in CLINT closed at $1.