SINGAPORE: Singapore-based real estate giant CapitaLand’s Indian investment arm, CapitaLand India Trust (CLINT), is poised to strengthen its foothold in the Indian market with the acquisition of three industrial facilities at OneHub Chennai. The deal, valued at $43.2 million, is set to be completed with Casa Grande Group as the selling entity.
The purchase price encompasses CLINT’s partial funding for the lease of the project land, along with full funding for the subsequent development phases.
The transaction structure involves a forward purchase arrangement between CLINT and Casa Grande Group, where the real estate investment trust (REIT) will provide funding in three phases, eventually acquiring the facilities upon the completion of each construction phase.
The acquisition process is subject to a six-month stabilization period for leasing after the completion of each phase. This approach aligns with CLINT’s commitment to ensuring the optimal utilization and stability of the acquired assets.
CLINT anticipates the completion of the Phase 1 acquisition by the first half of 2025, marking a significant milestone in its expansion strategy.
Post-acquisition, the floor area dedicated to CLINT’s industrial, logistics, and data centre asset classes will witness a notable increase from 12% to 14% of its committed pipeline.
The total floor area under CLINT’s committed pipeline will experience a 2.6% augmentation, rising from 30.1 million square feet to 30.9 million square feet.
The move underlines CLINT’s concerted efforts to diversify and strengthen its presence in key real estate segments while capitalizing on growth opportunities in India’s burgeoning industrial and logistics sectors.
The acquisition is expected to be mutually beneficial by enhancing CapitaLand’s asset portfolio and contributing to the economic development and infrastructural growth of OneHub Chennai, establishing it as a key player in the dynamic Indian real estate landscape.