CapitaLand India Trust completes first divestment to unlock $161.7 million in value

CapitaLand India Trust completes first divestment, raising $161.7 million

Leading commercial real estate trust CapitaLand India Trust (CLINT) will be divesting of two of its assets - CyberVale in Chennai and CyberPearl in Hyderabad - to an unrelated third party for Rs 1,103.1 crore or approximately $161.7 million, unlocking value in first such sale since its listing in 2007.

Both the assets will be divested at around a three percent premium to their independent valuations as of December 31, 2024, and the net proceeds from the sale are expected to be Rs 1,082.8 crore or approximately $158.8 million.

CyberVale comprises around 0.8 million sq ft of Information Technology (IT) Special Economic Zone and 0.2 million sq ft of Free Trade Warehousing Zone in Mahindra World City, while CyberPearl is a 0.4 million sq ft IT Park located in HITEC City.

Gauri Shankar Nagabhushanam, CEO of CapitaLand India Trust said the move optimises CLINT’s portfolio, “The successful divestment of CyberVale and CyberPearl marks the commencement of our capital recycling strategy to optimise CLINT’s portfolio and enhance our financial agility. By divesting these two assets, we have the option to utilise the proceeds to strengthen our balance sheet through debt repayment, recycle capital into higher-yielding projects to further grow CLINT’s portfolio, and enhance distributions to unitholders. With our strong financial position, we will continue to seek attractive and accretive investments to deliver sustainable returns to our unitholders.”

Following the divestment, which involves a total area of about 1.4 million sq ft, CLINT’s completed floor area across its portfolio will be about 21.2 million sq ft.

In Chennai, the trust’s portfolio will include International Tech Park Chennai, three industrial facilities, and one data centre under development. In Hyderabad, the portfolio will consist of International Tech Park Hyderabad - aVance Hyderabad - and a data centre which is currently under development.