CLINT to buy 25L-sft office complex from Phoenix Group in Hyd

Hyderabad: CapitaLand India Trust (CLINT) on Friday said it has agreed to acquire an under-construction office complex, comprising 25 lakh sq ft area, in Hyderabad from Phoenix Group after completion.

In a statement, CLINT said it has "entered into a forward purchase agreement with Phoenix Group to acquire IT buildings with a total leasable area of 2.5 million sq ft in HITEC City area of Hyderabad". The acquisition of the strategically located assets is expected to increase CLlNT's earnings and distributions for unit holders.

"As part of the forward purchase arrangement, CLINT will provide funding of Rs 2.15 billion (Singapore dollar 34.68 million) to refinance the existing loan and receive interest on the funding at a rate which is higher than its borrowing cost. CLINT will also provide funding in future towards development of the buildings and acquire the buildings at a price to be determined as and when each building is constructed and leased up to 90 per cent. The acquisition is attractive as its capitalisation rate is higher compared to the market's capitalisation rates. Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management Pte Ltd (the Trustee-Manager of CLINT), said, "The forward purchase allows us to secure prime assets that will further strengthen our presence in Hyderabad, which has strong leasing demand from multinational companies."

CLINT was listed on the Singapore Exchange Securities Trading Ltd (SGX-ST) in August 2007 as the first Indian property trust in Asia. Its principal objective is to own income-producing real estate used primarily as business space in India.