Capitaland India Trust Acquiring 113 Million Sq Ft Office Space Bangalore 2336 Mil

Asia’s leading diversified real estate group CapitaLand Limited (CapitaLand) announced that its India-listed real estate investment trust CapitaLand India Trust (CLINT) has entered into a forward purchase agreement with Maia Estates Offices (Maia), to acquire a prime office project in Bangalore for INR 16.9 billion (approximately $233.6 million). This transaction will be funded by CLINT’s internal cash resources and debt facilities, and is expected to be accretive to its distribution per unit (DPU) and earnings.Completion of the transaction and the acquisition is expected to take place in the first half of 2030.Upon completion, this acquisition will add a 1.13 million square feet office project to CLINT’s portfolio, enhancing its earnings and distributions for unitholders. Net profit is forecasted to be approximately $7.7 million on a stabilized basis, and DPU is expected to increase from 6.84 cents to 6.98 cents.The office project is part of a mixed-use development comprising office and retail space, situated in Nagawara, Outer Ring Road, Bangalore. As part of the forward purchase agreement, CLINT will fully fund the development of the office project and receive interest on the funding at a higher rate than its borrowing cost. Maia will retain the retail portion and continue as the developer of the project.Looking to diversify your real estate portfolio? Explore international investment opportunities here.AdvertisementAdvertisementWith the acquisition of this office project, CLINT’s portfolio size will increase to 31.47 million square feet, including its committed investment pipeline. This marks a 4.0% increase from its current portfolio size of 30.2 million square feet, further strengthening its presence in Bangalore, one of India’s fastest-growing and most prominent office markets.In 2024, Bangalore recorded its highest ever leasing levels for grade A office space, making it a highly attractive location for investors. Additionally, the Outer Ring Road (ORR) area, where the project is located, is the largest office micro-market in Bangalore. The addition of this prime office property will enable CLINT to offer its tenants a more diverse range of premium office space options across key micro-markets in Bangalore, in line with its commitment to provide high-quality office spaces to its tenants.CLINT’s CEO, Gauri Shankar Nagabhushanam, commented, “The acquisition of this strategically located office project will further strengthen CLINT’s presence in Bangalore, one of India’s most prominent office markets. In 2024, Bangalore had the highest ever leasing levels for Grade A office space. ORR is the largest office micro-market in Bangalore. With the addition of this prime office property, we will be able to provide our tenants with a larger offering of premium office space options across key micro-markets in Bangalore.”As of Feb 21, CLINT’s units closed flat at $1. With this acquisition, the company is poised to continue its growth and development in the Indian real estate market.

The current Master Plan is dedicated to the advancement of mixed-use properties, with a key focus on establishing new commercial spaces that can attract businesses and generate employment opportunities. This initiative also includes improvements to existing retail centers, such as Tampines Mall and Century Square, along with the introduction of innovative retail options. A prime example of this is the recent addition of Parktown Residence Condo, which seamlessly aligns with the overarching goal of creating a thriving mixed-use community. This new development offers a wide range of amenities and seamlessly integrates into the ever-evolving landscape of the area. In fact,fConveniently located near Parktown Residence Condo are a variety of shops, restaurants, and other service establishments, making it an ideal choice for residents looking for a well-connected and diverse living experience.