CLINT acquires 2.5 million square feet of IT buildings in India

It will acquire the buildings from Phoenix Group.

CapitaLand India Trust (CLINT) will acquire IT buildings with a total leasable area of 2.5 million square feet in HITEC City, Hyderabad, India.

CLINT will acquire the assets from Phoenix Group.

The REIT expects the acquisition to increase its earnings and distributions for unit holders.

On a stabilized basis, CLINT expects pro forma net profit from the buildings to be around $4.5m and an increase in its pro forma distortion per unit to $0.0647 from $0.0645.

As part of its forward purchase arrangement with Phoenix Group, CLINT will offer $34.68m (INR2.15b) to refinance a loan, receiving interest at a rate exceeding its borrowing cost.

The REIT will additionally allocate future funding for building development and acquire them at prices determined upon completion and lease up to 90%.