Singapore-based investor CapitaLand’s India-focused real estate investment trust (REIT) has expanded its Bengaluru portfolio by investing in an office project in the Outer Ring Road area. It will acquire the project upon completion.
CapitaLand Investment Trust (CLINT) on Friday said it has entered into a forward purchase agreement with Maia Estates Offices Pvt Ltd to acquire the office project in Nagawara, Outer Ring Road, for about S$233.6 million ($174 million, or Rs 1,509 crore). Funding towards project development will be around S$156.4 million (around $117 million).
The project, which is currently under development, is part of a mixed-used commercial development with offices and retail assets. The total net leasable area is approximately 1.36 million square feet, and the office part of the project has a net leasable area of about 1.13 million square feet.
The investment trust will offer debt funding for project development and is expected to take control of the office assets by H1 2030. “We will leverage our deep market knowledge and tenant relationships to drive occupancy for the office project. This forward purchase marks the beginning of our partnership with Maia, a distinguished luxury developer in Bangalore with a strong track record,” said Gauri Shankar Nagabhushanam, chief executive officer, CapitaLand Investment Trust.
The asset is projected to add about S$ 7.7 million to its net profit. During the construction period, the investor’s fund infusion in the project will be through divestment proceeds over the near term, debt and internal resources.
Overall, the asset acquisition will increase CLINT’s Bengaluru portfolio operational area from 8.7 million square feet currently to 9.9 million square feet. Some of its other assets, including the ones under development in Bengaluru, are International Tech Park Bangalore (ITPB), two office buildings in Gardencity IT Park in Hebbal, Ebisu IT Park at Outer Ring Road, and a data centre in ITPB.
The acquisition will also help increase CLINT’s portfolio--including a committed investment pipeline--by 4%, from approximately 30.2 million square feet currently to approximately 31.4 million square feet.
As of September 30, 2024, the REIT's overall assets under management were at S$3.3 billion. The portfolio includes 10 IT business parks, three industrial facilities, one logistics park and four data centres being developed in India. It has a total completed floor area of 21.8 million square feet spread across Bengaluru, Chennai, Hyderabad, Pune and Mumbai.
