CapitaLand India Trust launches S$150 million private placement to fund two office building projects

The issue price will be between S$1.208 and S$1.237 per new unit &ndash a discount of 2.6 to 4.9%

[SINGAPORE] CapitaLand India Trust : CY6U 0%(Clint) is set to issue new units to raise gross proceeds of at least S$150 million, its manager said on Tuesday (Feb 24).

The new units, expected to be listed on Mar 5, will be issued at a price between S$1.208 and S$1.237 per unit.

This represents a 2.6 to 4.9 per cent discount to the volume weighted average price of S$1.2701 per unit as at Monday.

To ensure fairness to existing unitholders, the manager intends to declare an estimated &ldquo advanced distribution&rdquo of S$0.0144 per unit for the period from Jan 1 to the day before the new units are issued.

Factoring in this payout, the issue price represents a slightly narrower discount of between 1.5 and 3.8 per cent to the adjusted volume weighted average price of S$1.2557.

&ldquo The private placement will enable Clint to provide funding to execute the development and construction of (two office buildings) to drive income growth and portfolio enhancement,&rdquo said the trust&rsquo s manager.

On a pro forma basis for FY2025, the transaction is expected to be distribution accretive, added the manager.

Distribution per unit would have risen 5.1 per cent to S$0.0828 had the placement been completed in 2025, it said.

Clint&rsquo s gearing ratio would have also dropped by 2.8 percentage points to 36.8 per cent on a pro forma basis upon deployment of the private placement proceeds.

This pro forma drop, however, assumes that net proceeds from  the trust&rsquo s divestment of a 20.2 per cent interest  in three data centre assets on Dec 31 were used to repay debt on the same day.

The new units to be issued will increase the total number of units by at least 121.3 million units, or about 8.9 per cent of the total number of units currently in issue.

This offer will be made to eligible institutional, accredited and other investors.

The issuance will also not require fresh shareholder approval as it is permitted under a general mandate approved at Clint&rsquo s April 2025 annual general meeting.

&ldquo The increase in the total number of units in issue and enlarged unitholder base is expected to improve the overall trading liquidity of the units,&rdquo said the trust&rsquo s manager.

Use of proceeds

S$100 million of the proceeds will be used to partially fund the ongoing development and construction of the 1.2 million square-foot office property Building 1, Ebisu in Bengaluru, India &ndash set to be completed in the second half of this year.

In return, Clint will receive an annual coupon rate of at least 11.5 per cent under an existing agreement with the developer. As at Dec 31, the remaining funding commitment in relation to the project was about 8.6 billion Indian rupees (S$123 million), said the trust&rsquo s manager.

About S$47.4 million of the proceeds will partially fund the ongoing development and construction of the 1.1 million square-foot office building The Beacon at Nagawara in Bangalore, India &ndash in return for at least 11.5 per cent coupon.

The building is set to be completed in the second half of 2028. Its remaining funding commitment in relation to the project was some 10.7 billion rupees as at Dec 31.

&ldquo Clint&rsquo s unique forward purchase strategy provides an attractive structure to lock in quality development projects while benefiting from an income stream from interest coupons of at least 11.5 per cent during the development period,&rdquo said the manager.

Once the properties are completed and stabilised, Clint expects to formally acquire them with an estimated rental yield ranging from 9 to 10 per cent, based on historical transactions.

The addition of the two developments will ultimately contribute 2.3 million square feet to the trust&rsquo s portfolio, increasing its Bangalore footprint by 7 percentage points to 34.6 per cent of its total floor area.

The remaining S$2.6 million will be used for expenses and fees related to the private placement.

The manager also noted that if the development of either building fails to materialise, it retains absolute discretion to redirect the net proceeds towards other purposes, such as funding other committed pipeline projects or repaying existing debt.

Net property income is 9% higher at S$111.3 million

[SINGAPORE]   CapitaLand India Trust   : CY6U 0% recorded a distribution per unit (DPU) of S$0.039 for its second half ended Dec 31, 2025, up 22 per cent from S$0.032 in the year-ago period.

 

This brought its full-year DPU for FY2025 to S$0.0787, 15 per cent higher than S$0.0684 in FY2024, the trustee-manager said on Monday (Feb 2). 

 

For the half year, the trust&rsquo s income to be distributed stood at S$53.3 million, up 25 per cent from S$42.6 million in H2 FY2024, bringing the full-year figure to S$107 million. This was a 17 per cent year-on-year increase from S$91.3 million. 

 

Total property income for H2 rose by 2 per cent on the year to S$145.1 million, from S$141.8 million previously. For the full year, its total property income stood at S$294.4 million, a 6 per cent increase from S$277.9 million. 

 

Total property expenses were down 15 per cent at S$33.8 million for H2. They fell 4 per cent to S$69.5 million for the full year. 

 

The trust&rsquo s H2 net property income (NPI) rose by 9 per cent to S$111.3 million from S$102.1 million. NPI for FY2025 increased 9 per cent to S$224.9 million from S$205.6 million.

 

The distribution will be paid on Mar 19, with a record date of Feb 13. 

The facility has a gross power capacity of 55 MW and is set to be completed by Q4 2026

 

[SINGAPORE] The trustee-manager of   CapitaLand India Trust   : CY6U -0.81% (Clint) on Thursday (Jan 15) announced that it has secured its second long-term agreement with a global hyperscaler for Tower 2 of CapitaLand DC Navi Mumbai in Airoli, Navi Mumbai, India.

 

The facility has a planned IT load of 37 megawatts (MW) and gross power capacity of 55 MW. 

 

&ldquo It is one of the largest single-tower implementations of liquid cooling in the region and has one of the best design power usage effectiveness achieved for a single data-centre tower,&rdquo said the trustee-manager.

 

It added that the tower is expected to be completed by the fourth quarter of 2026, and will be progressively handed over to the tenant in the first half of 2027.

 

This deal comes on the back of the trust having pre-leased 53 per cent of the total gross power capacity across its three data centres under development in Navi Mumbai, Hyderabad and Chennai. 

 

In January 2025, Clint inked its first long-term agreement with a global hyperscaler for one of its data centres in development. 

 

Clint&rsquo s portfolio includes eight IT business parks, three industrial facilities, one logistics park and four data-centre developments in India, with a total completed floor area of 21.7 million square feet in Bengaluru, Chennai, Hyderabad, Pune and Mumbai.

 

The assets will be acquired by CapitaLand Investment&rsquo s development-focused data centre fund, which completed its first close with S$150 million in equity

[SINGAPORE]   CapitaLand India Trust (Clint)   : CY6U -0.81% has entered deals to divest partial stakes in three data centre assets under development to the CapitaLand India Data Centre Fund (CIDCF), which is under   CapitaLand Investment (CLI)   : 9CI 0%.  

 

CIDCF, which focuses on opportunities in India&rsquo s data centre corridor, will acquire stakes of 20.2 per cent in each of the three data centre assets, CLI said on Wednesday (Dec 31). The estimated total purchase consideration is seven billion rupees (S$99.7 million).

 

The fund will also have the right of first offer to acquire a stake in Clint&rsquo s fourth data centre, CapitaLand DC Bangalore, in Bengaluru.

 

The transactions are in line with Clint&rsquo s portfolio reconstitution strategy to realise value from its data centre developments and strengthen its balance sheet, the trust&rsquo s manager said on Wednesday. 

 

Gauri Shankar Nagabhushanam, chief executive officer of Clint&rsquo s manager, said: &ldquo By unlocking value earlier in the development cycle, while retaining a significant stake in the assets, we are able to support our development pipeline and enhance financial flexibility.&rdquo

 

He added that the trust&rsquo s remaining stakes in the assets allow it to stay invested in the growth of India&rsquo s data centre sector. 

 

&ldquo The partnership with CIDCF also provides Clint the right to participate in a partial stake in future data centre developments by our sponsor, and potentially buy back the assets or explore exit options such as an initial public offering of the assets,&rdquo he noted. 

 

The three data centre assets will have artificial intelligence capabilities and sustainable design features to meet the demands of hyperscalers and large enterprises in the region, CLI said. 

 

Collectively, the projects have a secured power capacity of around 200 megawatts (MW), it added. 

 

The first completed tower of CapitaLand DC Mumbai, located in Navi Mumbai, has a capacity of 34 to 50 MW. The second tower, which is still under development, will have 37 to 55 MW of capacity. 

 

CapitaLand DC Chennai and CapitaLand DC Hyderabad will have 34 to 53 MW and 27 to 42 MW of capacity, respectively, when completed.

 

CIDCF will fund the acquisitions with equity raised in its first close &ndash which was anchored by a third-party global institutional investor &ndash of around S$150 million. The fund has a target of S$300 million at its final close. 

 

The total purchase consideration of the three data centres is based on 20.2 per cent of the total enterprise value of 52 billion rupees as at Dec 31, 2025, Clint&rsquo s manager said. This is subject to post-completion adjustments for liabilities, working capital and capital expenditure. 

 

The transaction follows Clint&rsquo s September divestment &ndash its first since its 2007 listing &ndash of two assets in Chennai and Hyderabad for 11 billion rupees. 

On Oct 14, abrdn Holdings increased its deemed interest in   CapitaLand India Trust   : CY6U +0.85% (Clint) from 5.97 per cent to 6 per cent. The 451,800 units were acquired at S$1.16 apiece. 

 

A subsequent filing detailed that on Oct 17, there was a market transaction for the sale of 180,600 shares and an off-market transaction for a purchase of 50,200 shares. This trimmed the substantial shareholding to a thin margin below 6 per cent.

 

A subsidiary of Aberdeen Group, abrdn Holdings serves as the parent company to subsidiaries that manage investments on behalf of a diverse range of clients and funds. abrdn Holdings became a substantial shareholder on Jul 14, with the acquisition of 1,955,100 units taking its deemed interest from 4.90 per cent to 5.04 per cent. This saw the deemed interest of Aberdeen Group cross the 6 per cent threshold, as disclosed on Jul 15.

 

Clint is scheduled to report its Q3 2025 business update before the market opens on Oct 31. On Jul 30, it reported a 9 per cent year-on-year increase in distribution per unit to S$0.0397 for H1 2025. Net property income (NPI) rose 14 per cent in Indian rupee terms and 10 per cent in Singapore dollar terms, driven by higher property income and partly offset by increased operating expenses. 

 

Income available for distribution grew 15 per cent in rupee terms and 10 per cent in Singdollar terms, mainly due to higher NPI, offset by higher finance costs and trustee-manager fees.

 

On Sep 29, Clint completed the divestment of two properties &ndash CyberVale IT SEZ, Chennai and CyberPearl IT Park, Hyderabad. The CEO of the Clint trustee-manager, Gauri Shankar Nagabhushanam, noted that these divestments are part of an active portfolio management strategy, which increases its financial flexibility to pursue higher-yielding assets and deliver sustainable returns for unitholders. 

 

Following the divestment, Clint&rsquo s completed portfolio spans about 21.2 million square feet across Bengaluru, Chennai, Hyderabad, Pune, and Mumbai.

 

Clint continues to focus on capitalising on the fast-growing IT industry and logistics/industrial asset classes in India, as well as proactively diversifying into other asset classes such as data centres. 

 

On Sep 11, Syfe initiated coverage on Clint, highlighting that its tenant mix is diversified across 329 customers, with no single tenant contributing more than 12 per cent of gross rental income, reducing reliance on any one occupier. Syfe maintained that this broad tenant base stabilises income streams and enhances resilience across market cycles, helping to cushion the impact of sector-specific downturns.

 

Unlike a traditional Reit, Clint is structured as a business trust and is not subject to any limit on development activities, giving it flexibility to develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion. 

 

However, to balance flexibility in investment strategies and prudent capital management, Clint&rsquo s trust deed provides that development activities will be limited to 20 per cent of deposited property, and has voluntarily adopted key safeguarding provisions, such as maintaining a gearing limit and distributing at least 90 per cent of distributable income.

 

In January 2025, Clint signed a long-term agreement with a leading global hyperscaler for a data centre, and its data centre developments are progressing as planned. In February, Clint entered a forward purchase agreement with an affiliate of Maia Group to acquire a 1.1 million sq ft office development in Nagawara, Outer Ring Road, Bengaluru &ndash an acquisition that will expand Clint&rsquo s Bengaluru portfolio to 9.9 million sq ft by 2028.

 

Clint&rsquo s business parks are positioned to benefit from India&rsquo s growing innovation economy. Nagabhushanam shared that in Clint&rsquo s business parks, engineers design semiconductor tools, scientists work on drug discovery, and automotive firms model autonomous driving systems. 

 

He highlighted that the country&rsquo s infrastructure push, rapid digital adoption, and rising incomes fuelling demand for housing, consumer goods and warehousing, are creating powerful growth corridors.

 

He added that against the macro backdrop, business park rents remain low by global standards as per-capita income rises, rents are expected to climb, providing potential strong tailwinds for Clint&rsquo s steady growth.

 

[SINGAPORE] The trustee-manager of CapitaLand India Trust (Clint) on Thursday (Sep 25) said that its wholly owned subsidiary, Ascendas Property Fund (India), will sell its entire interest in Cyber Pearl Information Technology Park (CITPPL) for around 11 billion rupees (S$161.7 million). 

 

CITPPL is composed of two assets: CyberVale in Mahindra World City, Chennai, and CyberPearl in Hitec City, Hyderabad. 

 

The sum is based on CITPPL&rsquo s total enterprise value of 9.8 billion rupees, adjusted for working capital changes and outstanding liabilities, and subject to post-closing adjustments. The purchaser, an unrelated third party, will satisfy the consideration wholly in cash.

 

CyberVale consists of an 800,000-square-foot (sq ft) IT special economic zone and a 200,000 sq ft free trade warehousing zone. Its independent valuation stood at about 5.3 billion rupees as at Dec 31, 2024.

 

The CyberPearl asset is a 400,000 sq ft IT park, with an independent valuation of 4.2 billion rupees as at Dec 31, 2024.

 

Clint&rsquo s trustee-manager said the sale will monetise non-core assets with limited strategic value strengthen the trust&rsquo s balance sheet and enhance its financial flexibility and recycle capital into higher-yielding and accretive investments. 

 

The expected net proceeds of 10.8 billion rupees may be used to repay debt, reinvest in higher-yielding projects, or enhance distributions to unitholders, the trustee-manager said. 

 

Clint engaged Savills Property Services (India) to carry out the independent valuations of the two assets as at Dec 31, 2024. Their open market value was determined to be around 9.5 billion rupees, based on a discounted cash flow method and income capitalisation approach. 

 

The divestment&rsquo s total enterprise value is about 3 per cent higher than the aggregate of the independent valuations, the trustee-manager noted. 

 

CapitaLand India Trust unit to divest two assets in Chennai, Hyderabad for 11 billion rupees

Following the sale, Clint&rsquo s completed floor area across its entire portfolio will total around 21.2 million sq ft. 

 

In Chennai, its portfolio would comprise International Tech Park Chennai, three industrial facilities, and one data centre under development. As for its Hyderabad portfolio, the assets would consist of International Tech Park Hyderabad, aVance Hyderabad, and a data centre under development.

 

[MUMBAI] CapitaLand India Trust is in advanced talks to sell office parks to Viko Group, an Indian family office, for as much as US$140 million, as the Singapore-based company trims its portfolio in the country, according to people familiar with the matter.

 

The deal involves technology parks with 1.7 million square feet of leased commercial space in the south Indian cities of Chennai and Hyderabad, the people said, asking not to be named as the information is private. Viko is backed by Indian real estate entrepreneur Yerram Vikranth Reddy. 

 

The acquisition will increase Viko&rsquo s income-generating office portfolio to four million square feet across Bengaluru, Chennai, and Hyderabad, India&rsquo s top information technology hubs, one of the people said. 

 

Viko, whose investments also include a fashion startup Virgio and a sports firm, joins other Indian family offices including billionaire Sunil Bharti Mittal&rsquo s unit in betting on the booming IT-led office market.

 

CapitaLand India Trust had assets under management worth S$3.7 billion as at June, according to its filing. The Reit is backed by the listed investment arm of CapitaLand Group.

 

Representatives of CapitaLand India Trust Management and Viko did not immediately respond to a request for comment.

 

The Indian office market has seen strong growth, led by global capability centres leasing more space this year than previously, according to a Jones Lang LaSalle report. 

 

CapitaLand has been in India for three decades, according to information available on its website. Its investments span business parks, data centres and logistics hubs. 

 

The investment arm has also been looking to divest assets elsewhere, such as in China. 

Its manager aims to divest one-third of its data centre portfolio by Q4 2025 to a new fund by its sponsor

 

[SINGAPORE] CapitaLand India Trust (Clint) will divest one-third of its data centre portfolio to its sponsor CapitaLand Investment, which is launching a new fund in India. 

 

In an interview with The Business Times, Gauri Shankar Nagabhushanam, the chief executive officer of Clint&rsquo s manager, said that four data centres in Bengaluru, Chennai, Hyderabad and Navi Mumbai will become the seed assets for the fund.

 

&ldquo The divestment is part of Clint&rsquo s portfolio reconstitution strategy, which will increase its financial flexibility to pursue higher-yielding opportunities,&rdquo he added. &ldquo The limited partners are conducting their due diligence and in due course, we are hopeful that the diligence will (be completed), and the transaction will go through.&rdquo  

 

The divestment is targeted for completion in the fourth quarter of 2025. 

 

Revenue contributions from Tower 1 of the Navi Mumbai data centre have started, and the development of the other data centres is under way. 

 

Nagabhushanam noted: &ldquo We want to crystallise the value creation because this data centre business is a new asset class which even globally not many people understand.&rdquo

 

He added: &ldquo If you look at our net asset value (NAV), data centres really uplifted our NAV in the second half, but the markets did not react because they were wondering (if) it&rsquo s an uplift. Is it real value? Is it book value?

 

&ldquo For us to be able to crystallise that value, the best way is to bring somebody and show that here is the NAV that we have created. And here is somebody who is ready to pay the same value for the asset.&rdquo  

 

Clint&rsquo s NAV stood at S$1.29 as at Jun 30. As at Friday (Aug 15), it was trading at S$1.18, an 8.5 per cent discount to its NAV.  

 

&ldquo At the end of the day, we are a business trust,&rdquo explained Nagabhushanam. &ldquo Now our focus is on dividend distribution. So we felt our exposure to construction was getting a bit high, so we wanted to divest some of&hellip the data centre business.&rdquo  

 

For the six months ended Jun 30, Clint posted a net property income of S$113.6 million, 10 per cent higher than for the same period a year earlier. Income available for distribution rose 10 per cent year on year, to S$59.6 million.

 

Clint entered the data centre business around 2021, when there were many uncertainties surrounding the return to office during the Covid-19 pandemic, Nagabhushanam said. 

 

As office footfall declined, the business trust decided there was a need to diversify, he added. &ldquo The most risk-adjusted asset class was data centres. If people are not going to work physically, they are going to go digital. So we got into development.&rdquo  

 

At that point in time, there were not many data centres in India even now, the country has data capacity for only one megawatt per million people, versus 20 megawatts per million people in Singapore. 

 

Nagabhushanam said that Clint is paying close attention to the development of artificial intelligence, which would determine how its portfolio shapes up. 

 

For the first half of 2025, Clint&rsquo s committed portfolio occupancy stood at 90 per cent. 

 

The business trust maintained a 9 per cent positive rental reversion across its assets. 

 

Nagabhushanam noted: &ldquo We are able to have fantastic reversions even in our older assets because of the active asset-enhancement schemes that we undertake for all of our assets. We want all of our assets to be up to grade, even if they were constructed maybe (a) couple of decades ago.&rdquo

 

International Tech Park Bangalore, which turns 31 this year, recently underwent a significant asset-enhancement initiative involving the installation of solar control window films, to give the buildings a fresh new look and achieve energy savings. 

 

The installation of solar films, along with other initiatives, resulted in total energy savings of nearly 10 per cent. 

 

As at Jun 30, Clint&rsquo s portfolio includes 10 IT business parks, three industrial facilities, one logistics park and four data centre developments in India across Bengaluru, Chennai, Hyderabad, Mumbai and Pune. 

 

Over the next three years, Clint&rsquo s committed pipeline should increase from about 23 million square feet (sq ft) to 33 million sq ft, Nagabhushanam said. This includes existing assets in its portfolio, forward purchase, as well as data centre and IT building developments. 

 

While Bengaluru is India&rsquo s best-performing business park market, the second-strongest market in India over the last three to four years has become Hyderabad as the city has enhanced its infrastructure, he pointed out. 

 

The National Capital Region, which includes New Delhi, is another strong market which Clint hopes to enter at some point, Nagabhushanam said. The region is known for its established base of tech firms and sizeable skilled workforce.

 

When asked about the impact of the tariff situation on Clint, the chief executive replied: &ldquo India&rsquo s exposure to goods exported is very minuscule. The tariffs are not really going to move the needle for India in terms of how its economy is going to perform (as) the service sector is entirely out of the tariff regime.&rdquo

 

India&rsquo s key exports are its software and services tariffs are not expected to have a material impact on the country, he said. 

 

On Jul 30, US President Donald Trump announced that imports from India will be raised to 50 per cent for its purchases of oil from Russia. The new rate is expected to take effect on Aug 27. 

 

Nagabhushanam noted how India&rsquo s resilience in the face of tariff uncertainty is also reflected in how, for the first half of 2025, it had a record absorption of business park space. This was mostly driven by demand from global capability centres (GCCs), he explained. &ldquo Indian offices traditionally used to be IT service companies, banking, financial services and insurance companies&hellip Now, today you have global corporates coming in, in huge numbers.&rdquo  

 

He added: &ldquo When new companies and global corporates want to set up shop in India, (they) are able to recruit people in bulk who (are) technically qualified, speak English and who are very active in terms of their learning capabilities.&rdquo  

 

By 2030, GCCs in India are expected to employ close to 2.8 million people and generate close to US$110 billion in business, Nagabhushanam said. &ldquo If you (assume) 2.8 million people, the ratio we use is about 1 is to 100. So you&rsquo re talking about 280 million sq ft of absorption that is required to house these 2.8 million people (who) are expected to be employed by GCCs.&rdquo  

 

Clint is well-positioned to meet this leasing demand with its on-the-ground leasing teams. &ldquo These are supported by a national leasing team headquartered in Bengaluru, which leverages its network to broaden our reach of multinational companies and for cross-selling opportunities across multiple asset classes, including commercial, industrial, and data centres,&rdquo he said. &ldquo This integrated approach creates a strong leasing network that enables Clint to maintain among the highest occupancy rates among our peers.&rdquo

 

Nagabhushanam also noted that CapitaLand Investment&rsquo s &ldquo established presence in India, proprietary deal origination capabilities and access to market intelligence&rdquo gives Clint a &ldquo distinct competitive advantage&rdquo .

 

&ldquo We are also able to leverage the extensive international network of CapitaLand Investment&rsquo s marketing team in Singapore, which has strong connections with decision-makers of MNCs based in Singapore.&rdquo  

 

He added: &ldquo We are able to cater to the tenants at all&hellip levels, which is very unique. No other developer in India has those capabilities, which is why we are differentiated and which is why we have always consistently had the highest occupancies among our peers in India.&rdquo

 

Noting how Clint&rsquo s share price is closer to S$1.10 as at late July, compared to S$1 in June, Nagabhushanam said that the markets are &ldquo recognising the potential that is there in Clint, and hopefully this trend continues&rdquo .

 

&ldquo If you believe in the India economic growth (story) of an average of about 7 per cent, Clint is a very active vehicle (through) which you can&hellip participate in the growth that&rsquo s happening in India.&rdquo