CapitaLand India to Invest Rs 268 Crore in 3 Chennai Industrial Facilities
CapitaLand India Trust (CLINT) has entered into a forward purchase agreement with Casa Grande Group to purchase three industrial facilities comprising a total net leasable area of 0.79 million sq ft at OneHub Chennai, India. The total acquisition cost is approximately Rs 268 crore. The transaction price covers CLINT's partial contribution towards the land lease and complete funding for the development of the project, as stated by the company.
This follows CLINT's earlier forward purchase transactions with Casa Grande Group for three industrial facilities at Mahindra World City, Chennai. Jointly developed by CapitaLand Development, Mizuho Bank and JGC Corporation, OneHub Chennai is about 1,250-acre integrated industrial park with established infrastructure.
As per the agreement, CLINT will finance the project in three stages and subsequently take ownership of the facilities upon the completion of each construction phase. This transfer will occur after a stabilization period of six months for leasing. The finalization of the acquisition for Phase 1 is anticipated to take place in the first half of 2025.
"The acquisition will further diversify CLINT's portfolio and grow our industrial presence in Chennai, which is developing into an important hub for electronics component manufacturers in South India", said Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management Pte—Ltd (the Trustee-Manager of CLINT).
Through its forward purchase agreements, CLINT has strategically secured a pipeline of industrial assets situated in key locations, positioning itself to benefit from the increasing demand of global companies establishing industrial facilities in India. Upon the completion of the proposed acquisition, the total floor area within CLINT's committed pipeline for industrial, logistics, and data center asset classes will expand from 30.1 million sq ft to 30.9 million sq ft.
In Chennai, CLINT presently holds a portfolio that includes two business parks, namely the International Tech Park Chennai and CyberVale, along with three industrial facilities situated at Mahindra World City. Additionally, there is an ongoing development of a data center in Ambattur, slated for completion in 2025.
