CapitaLand India Trust (CLINT) is set to significantly enhance its portfolio with a strategic investment in Hyderabad’s HITEC City, one of India’s premier IT and office hubs. Through a forward purchase agreement with Phoenix Group, CLINT will acquire IT buildings spanning a total leasable area of 2.5 million square feet. This move is poised to cater to the robust demand from numerous large multinational corporations in the area.

Sanjeev Dasgupta, CEO of CapitaLand India Trust Management Pte. Ltd., emphasised the strategic nature of the investment: “The forward purchase allows us to secure prime assets that will further strengthen our presence in Hyderabad, which has strong leasing demand from multinational companies.” He highlighted the location’s significance, noting that the buildings are “situated within the city’s prime IT Corridor in HITEC City,” where CLINT already boasts a portfolio of approximately 5.2 million sqft with high occupancy levels.

The transaction is expected to significantly enhance CLINT’s financial performance. Projected net profits from these buildings are about $4.5 million on a stabilised basis, and distribution per unit will slightly increase from 6.45 cents to 6.47 cents. To facilitate this acquisition, CLINT will provide Rs 2.15 billion in funding to refinance existing loans and continue investing in developing these properties. The capitalisation rate of this acquisition is notably higher than current market rates, indicating a potentially lucrative return on investment.

This strategic expansion consolidates CLINT’s footprint in one of Hyderabad’s key business districts and aligns with its broader investment strategy to boost earnings and distributions for unitholders. Integrating these high-value assets into CLINT’s existing portfolio is expected to yield significant economic benefits, reinforcing its position as a major player in India’s real estate investment trust market.

About CapitaLand India Trust (CLINT)

CapitaLand India Trust (CLINT) is a notable investment vehicle focusing on owning and managing income-generating real estate used primarily for business purposes in India. As a Real Estate Investment Trust (REIT), it pools together investors’ money to buy, develop, and manage real estate properties. CLINT explicitly targets properties used as office spaces, IT parks, and industrial buildings. It aims to provide investors with regular and stable returns, mainly through rental income generated from these properties. CLINT is part of CapitaLand Investment, a global real estate investment manager, which gives it strong backing and expertise in the real estate market.