Singapore-based real estate investment trust, CapitaLand India Trust (CLINT), has announced plans to acquire a new office project in Nagawara, Outer Ring Road, Bangalore. The project, which spans over 1.13 million square feet, will be acquired through a forward purchase agreement with Maia Estates Offices for $233.6 million.
According to CLINT, the acquisition of this office project is expected to significantly improve earnings and distributions for its unitholders. On a stabilized basis, the project is expected to bring in a net profit of $7.7 million, while distribution per unit is forecasted to increase from 6.84 cents to 6.98 cents.
The office project is part of a mixed-used development that includes retail space. Under the forward purchase agreement, CLINT will fully finance the development of the office project and receive interest on the funding at a higher rate than its borrowing cost.
Upon completion of the development, which is expected in the first half of 2030, CLINT will acquire the office space while Maia will retain the retail portion. This will expand CLINT’s operational area in Bangalore to 9.9 million square feet, up from its current 8.7 million square feet. The group also has other properties under development in Bangalore, including two office buildings in Gardencity, an IT park at Hebbal, and an IT park at ITPB.
With the addition of the new office project, CLINT’s portfolio size, including its committed investment pipeline, will increase by 4.0% from about 30.2 million square feet to approximately 31.47 million square feet.
According to CEO of CLINT, Gauri Shankar Nagabhushanam, the acquisition of this strategically located office project will strengthen the group’s presence in Bangalore, one of India’s most prominent office markets. In 2024, Bangalore recorded the highest ever leasing levels for Grade A office space. Outer Ring Road (ORR) is the largest office micro-market in Bangalore, and the addition of this prime office property will give CLINT the opportunity to offer its tenants a wider selection of premium office space options across key micro-markets in the city.
On Feb 21, units in CLINT closed flat at $1.
One crucial factor to consider when investing in a Singapore condo is the government’s property cooling measures. Singapore’s government has implemented various measures over the years to prevent speculative buying and maintain a steady real estate market. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), impose higher taxes on foreign buyers and those purchasing multiple properties. While these measures may affect the immediate profitability of condo investments, they also contribute to the long-term stability of the market, creating a more secure environment for investments. As such, it is essential for investors to carefully consider these measures when making decisions about purchasing a Singapore condo.
Are you looking to invest in overseas properties? Explore projects available for sale around the world!