CapitaLand India Trust to invest in 2.5 million sq ft of IT buildings at HITEC City, Hyderabad
CapitaLand Investment Trust (CLINT) India has recently made significant strides in expanding its real estate portfolio with a forward purchase agreement to acquire IT buildings in Hyderabad’s Hitec City. The agreement involves acquiring Phoenix Group’s IT buildings with a leasable area of 2.5 million square feet, a major IT and office hub in the region tenanted by leading global multinationals. As part of the agreement, CLINT will provide refinancing to the tune of ₹250 crore to the Hyderabad-based builder, facilitating the acquisition and further development of the properties.
Hitec City, known for its vibrant IT ecosystem, has emerged as a prime investment destination, attracting both domestic and international investors seeking exposure to India’s burgeoning technology sector. CLINT’s strategic move to enter into the forward purchase agreement underscores its confidence in the long-term growth potential of Hyderabad’s real estate market, particularly in high-demand areas like Hitec City.
““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”, said Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management.
The acquisition is expected to significantly enhance CLINT’s earnings and distribution to its unitholders, with pro forma net profit from the buildings projected at $4.5 million. Additionally, the distribution per unit is anticipated to rise to 6.47 cents from the current 6.45 cents, reflecting the positive impact of the acquisition on CLINT’s financial performance.
Beyond the immediate acquisition, CLINT’s commitment extends to providing future funding towards the development of the buildings, further solidifying its long-term partnership with the Hyderabad-based builder. Moreover, the agreement allows CLINT to acquire the buildings at a predetermined price upon construction and lease-up to 90%, ensuring strategic alignment with its investment objectives.
