CAPITALAND India Trust (Clint) will purchase a 1.13 million-square-foot (sq ft) office project in Bengaluru from luxury residence developer Maia Group for 14.7 billion rupees (S$233.6 million).
The trustee-manager of Clint on Friday (Feb 21) said that net profit from the acquisition is forecast to be S$7.7 million, on a stabilised basis, while distribution per unit is expected to rise to S$0.0696 from S$0.0684.
Clint will fund up to S$156.4 million over the next four years as the project is constructed.
The office project is part of a freehold mixed-use development with a total net leasable area of 1.36 million sq ft, with retail space taking up the balance leasable area.
Clint expects to acquire the office space in the first half of 2030, while Maia will retain the retail portion.
The trustee-manager added that Clint will fund the acquisition through divestment proceeds over the near term, debt and internal resources.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“The forward purchase agreement will be executed upon completion of the office project construction and is subject to receipt of the occupancy certificate and the fulfilment of other key conditions,” it added.
The project will increase the operational area of Clint’s Bengaluru portfolio to 9.9 million sq ft, from 8.7 million sq ft currently.
Gauri Shankar Nagabhushanam, chief executive of the trustee-manager, noted that Bengaluru had record leasing levels for Grade A office space in 2024. In addition, Outer Ring Road, where Clint’s project is located, is the largest office micro-market in the city.
He added that the forward purchase marks the beginning of Clint’s partnership with Maia.
Prominent occupiers in the micro-market include tech companies such as Google and Oracle, as well as financial institutions like JPMorgan and Goldman Sachs.
Units of Clint closed flat at S$0.995 on Friday, before the announcement.
