Further expansion into industrial and logistics sector as part of CLINT’s proactive diversification strategy
Singapore, December 19, 2023 -- Impact on Portfolio
CLINT's first forward purchase transaction with the Casa Grande Group was for a fully leased industrial facility (Casa Grande – Phase 1) within the same micro-market. The acquisition was completed on 27 May 2022.
CapitaLand India Trust Management Pte. Ltd., the Trustee Manager of CapitaLand India Trust (“CLINT”) has completed the acquisition of Casa Grande – Phase 2. The acquisition comprises two fully leased industrial facilities comprising 0.33 million square feet (sq ft) at Mahindra World City, Chennai, India; and 0.31 million sq ft is leased to a leading international electronics manufacturer while the remaining 0.02 million sq ft is leased to a global energy solutions provider.
The completion of the acquisition is pursuant to the forward purchase agreement with the shareholders of Chengalpattu Warehousing Parks Private Limited (“CWPPL”, and the shareholders of CWPPL, the “Vendors”) announced on 14 July 2022. The definitive agreements for the acquisition have been executed with the Vendors to acquire all of the issued share capital in CWPPL, which owns Casa Grande – Phase 2, for a consideration of INR1,777 million1 (approximately S$28.7 million2).
At a glance
- Company
- CapitaLand India Trust
- Announcement
- Acquisition
- Location
- Chennai, India
Key figures
- Acquisition consideration
- INR1,777 million
- Approximate consideration in Singapore dollars
- S$28.7 million
- Combined facility area
- 0.33 million square feet
- Area leased to electronics manufacturer
- 0.31 million sq ft
- Area leased to energy solutions provider
- 0.02 million sq ft
- CLINT total completed portfolio floor area
- 19.6 million sq ft
People
- Sanjeev DasguptaChief Executive Officer of the Trustee-Manager
Products and programs
This is the second forward purchase transaction that CLINT has entered with the Casa Grande Group. The first forward purchase transaction of a fully leased industrial facility (Casa Grande – Phase 1) was completed on 27 May 2022.
"This investment underscores CLINT’s further expansion of its portfolio to include high quality industrial and logistics assets. The facilities are strategically located in Mahindra World City, Chennai, an established industrial micro-market in Chennai which is occupied by leading blue-chip companies. Going forward, CLINT will continue to tap into the rising demand from international and regional firms that are increasingly expanding their manufacturing activities in India."
Mr Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager
With the acquisition, CLINT’s completed floor area for its industrial and logistics assets has risen to approximately 10% of its portfolio. CLINT’s total completed floor area for its entire portfolio has also increased to 19.6 million sq ft.
CLINT’s presence in Chennai
With the completed acquisition of Casa Grande – Phase 2, CLINT’s portfolio in Chennai comprises two business parks (International Tech Park Chennai and CyberVale), three industrial facilities as well as a data centre under development in Ambattur which is expected to be completed in 2025.
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Notes:
1. Excludes transaction expenses; purchase price is subject to working capital adjustments on completion of the transaction.
2. Exchange rate of S$1 = INR62.
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In brief
CapitaLand India Trust (CLINT) has completed its purchase of Casa Grande – Phase 2, comprising two industrial facilities at Mahindra World City in Chennai, India. The trust acquired all issued shares in Chengalpattu Warehousing Parks Private Limited under a forward purchase agreement with the company’s shareholders. The consideration was INR1,777 million, approximately S$28.7 million, excluding transaction expenses and subject to working capital adjustments. CLINT says the facilities are fully leased: 0.31 million sq ft to an international electronics manufacturer and 0.02 million sq ft to an energy solutions provider. Following the acquisition, industrial and logistics assets account for approximately 10% of CLINT’s completed portfolio floor area, while total completed floor area reaches 19.6 million sq ft. The transaction is CLINT’s second forward purchase with the Casa Grande Group.
Key takeaways
- CLINT completed its acquisition of Casa Grande – Phase 2 in Mahindra World City, Chennai.
- The two facilities comprise 0.33 million sq ft and are fully leased, according to the company.
- The purchase consideration was INR1,777 million, approximately S$28.7 million, excluding expenses and subject to adjustments.
- Industrial and logistics assets now represent approximately 10% of CLINT’s completed portfolio floor area.
