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CapitaLand India Trust (CLINT) has struck a forward purchase agreement with Casa Grande Group to acquire three industrial facilities spanning a total net leasable area of 0.79 million sq. ft. at OneHub Chennai, India, valued at approximately INR 268 crore (USD 43.2 million). This includes CLINT's partial funding for project land lease and full funding for development. The acquisition is structured in three phases, with CLINT providing funding and subsequently acquiring each facility upon phase completion, subject to a six-month leasing stabilization period. Phase 1 acquisition is slated for the first half of 2025.
Sanjeev Dasgupta, CEO of CapitaLand India Trust Management Pte. Ltd. (the Trustee-Manager of CLINT), emphasized the acquisition's role in portfolio diversification and bolstering CLINT's industrial presence in Chennai. He highlighted Chennai's emergence as a key hub for electronics component manufacturers in South India and underscored the importance of offering high-quality facilities at OneHub Chennai, an established industrial township with plug-and-play infrastructure. Dasgupta also noted CLINT's strategic position with a pipeline of industrial assets, poised to capitalize on the rising demand from global companies seeking to establish industrial facilities in India.
The transaction is expected to enhance CLINT's earnings and distributions for Unitholders, driving further diversification into the industrial asset class and aligning with the Trustee-Manager's strategy to invest in high-quality logistics and industrial assets. Jointly developed by CapitaLand Development, Mizuho Bank, and JGC Corporation, OneHub Chennai spans approximately 1,250 acres and hosts blue-chip companies such as Hitachi Automotive Systems, Yamaha Music, and Daicel Corporation.
This forward purchase agreement follows CLINT's earlier transactions with Casa Grande Group for three industrial facilities at Mahindra World City, Chennai, a renowned industrial micro-market occupied by leading blue-chip companies. Notably, CLINT successfully completed the acquisition of its first industrial facility (Industrial Facility 1) on May 27, 2022, and subsequently acquired two additional industrial facilities (Industrial Facilities 2 and 3) on December 19, 2023. These acquisitions bolster CLINT's industrial portfolio and contribute to its commitment to investing in high-quality logistics and industrial assets.
With this proposed acquisition, the floor area of CLINT's industrial, logistics, and data center asset classes under its committed pipeline will increase from 30.1 million sq ft to 30.9 million sq ft, reinforcing its position in the market. Presently, CLINT's Chennai portfolio comprises two business parks, three industrial facilities at Mahindra World City, and a data center under development in Ambattur, slated for completion in 2025.
Overall, the forward purchase agreement between CLINT and Casa Grande Group marks a strategic move to expand CLINT's industrial portfolio in Chennai, tapping into the region's growing demand for industrial facilities and reinforcing its commitment to delivering value to Unitholders.
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