The total enterprise value of the sale is about 3 per cent higher than the aggregate of the independent valuations
[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’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’s trustee-manager said the sale will monetise non-core assets with limited strategic value; strengthen the trust’s balance sheet and enhance its financial flexibility; and recycle capital into higher-yielding and accretive investments.
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The expected net proceeds of 10.8 billion rupees may be used to repay debt, re-invest 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’s total enterprise value is about 3 per cent higher than the aggregate of the independent valuations, the trustee-manager noted.
Following the sale, Clint’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.
