Singapore-based CapitaLand Investments’ subsidiary, CapitaLand India Trust (CLINT), has acquired an asset in an IT park located in Navi Mumbai following a forward purchase agreement, the company announced on Monday.
CapitaLand India Trust, which has built an India portfolio across markets such as Hyderabad, Pune and Mumbai has now completed its acquisition of an office tower developed by Aurum Ventures in Navi Mumbai for about Rs 707 crore.
The transaction follows a forward purchase agreement signed between Aurum Ventures and CapitaLand India Trust (then Ascendas India Trust) in May 2018. The asset, Building Q2 is a 0.82-million-square-feet multi-tenanted IT Non-SEZ (Special Economic Zone) office building at Aurum Q Parc Business Park.
The investment trust also funded the development of the asset as per the agreement.
The building, a 22-storey office park, has been fully rented out to tenants including Mizuho Bank, DP World, ICICI Bank, Axis Securities, John Cockerill, ideaForge Technology and Shriram Finance.
While the forward purchase agreement was signed for two office buildings, CapitaLand India Trust has completed the acquisition of the other asset, Buidling Q1, an IT SEZ building, in November 2021 and has a committed occupancy of 94%.
During the announcement of the agreement, CapitaLand had said the trust will first subscribe to non-convertible debentures issued by the developer amounting to Rs 501.2 crore. The acquisition was to be completed by buying 100% shares of the developer based on certain leasing milestones or two years from the completion date.
The two assets together add a total of 1.47 million square feet to the trust’s portfolio, increasing the total floor area of its portfolio by about 4%.
“We have seen strong leasing interest and rental growth in Building Q2 due to demand from multinational companies seeking a convenient base, as Aurum Q Parc is in close proximity to transport networks such as Ghansoli railway station and the upcoming international airport in Navi Mumbai,” said Sanjeev Dasgupta, the chief executive of CapitaLand India Trust Management.
The trust’s Mumbai portfolio now includes one business park investment comprising two buildings - Building Q1 and Building Q2, one logistics park that includes seven operating warehouses, and one data centre asset that is currently under development.
In March, CapitaLand India Trust also completed the acquisition of the first phase of an IT Park asset located in Pune’s Hinjewadi.
As of March, the Singapore-listed trust’s assets under management were valued at about S$3.1 billion (Rs 19,270 crore). Its overall portfolio includes 10 IT business parks, three industrial facilities, one logistics park and four data centre developments in India, with a total floor area of about 21.0 million square feet.