CapitaLand India Trust (CLINT) has announced its plans to acquire an office project in Nagawara, Outer Ring Road, Bangalore, for $233.6 million. The investment will be made through a forward purchase agreement with Maia Estates Offices.
The acquisition of this 1.13 million sq ft office project is expected to bring in higher earnings and distributions for unitholders. The office project is part of a mixed-use development that includes office and retail space. As part of the deal, CLINT will fully finance the development of the office project and earn interest on the funding at a rate higher than its borrowing cost.
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Under the terms of the agreement, CLINT will acquire the office space in the first half of 2030, while Maia will retain the retail portion. This will increase the operational area of CLINT’s portfolio in Bangalore from 8.7 million sq ft to 9.9 million sq ft. The company’s other properties under development in the city include two office buildings in Gardencity, an IT Park at Hebbal, and another IT park at ITPB.
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Once the office project is acquired, CLINT’s portfolio will see a 4.0% increase in size, from approximately 30.2 million sq ft to 31.47 million sq ft, inclusive of its committed investment pipeline. CEO of CLINT, Gauri Shankar Nagabhushanam, believes that this strategic acquisition will further strengthen the company’s presence in Bangalore, which is one of India’s leading office markets. In 2024, Bangalore recorded the highest ever leasing levels for Grade A office space, with the ORR being the largest office micro-market in the city. The addition of this prime office property will allow CLINT to offer its tenants a wider range of premium office space options across key micro-markets in Bangalore.
On Feb 21, units in CLINT closed at $1. This announcement follows the recent acquisition of International Tech Park Pune from CLINT’s subsidiary and joint venture partner for $221.9 million, demonstrating the company’s continued growth strategy. CLINT is also working with India developer L&T Realty to develop 6 million sq ft of prime offices in India.