By Kailash Babar
Copyright indiatimes
CapitaLand India Trust (CLINT) has entered into an agreement to divest two of its office assets, CyberVale in Chennai and CyberPearl in Hyderabad, for Rs 1,103 crore ornaround S$161.7 million, marking the trust’s maiden divestment since its Singapore listing in 2007.CyberVale comprises about 0.8 million sq ft of IT Special Economic Zone and around 0.2 million sq ft of Free Trade Warehousing Zone in Mahindra World City, Chennai. CyberPearl, located in Hyderabad’s HITEC City, is an around 0.4 million sq ft IT park.While CLINT did not disclose the buyer, people familiar with the development said it is Hyderabad-based Viko Group.The divestment, carried out at a premium of around 3% to their independent valuations as at 31 December 2024, is part of CLINT’s ongoing portfolio reconstitution strategy. The net proceeds from these transactions are expected to be Rs 1,083 crore or around S$158.8 million.Live Events”This divestment 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,” said Gauri Shankar Nagabhushanam, CEO, CapitaLand India Trust Management, the Trustee-Manager of CLINT.Viko Group could not be reached immediately for a comment.Following the sale of the two assets, which together account for about 1.4 million sq ft, CLINT’s total completed floor area across its portfolio will stand at about 21.2 million sq ft.In Chennai, the trust will continue to own International Tech Park Chennai, three industrial facilities, and one data centre under development. In Hyderabad, its portfolio will comprise International Tech Park Hyderabad, aVance Hyderabad, and one data centre under development.The divestment provides CLINT with flexibility in capital allocation. The trust indicated it could channel proceeds either towards debt repayment or redeploy into projects with higher yields. The move is aligned with its broader strategy of capital recycling and maintaining portfolio quality in India’s key technology hubs.CLINT has been among the foreign real estate investment trusts with exposure to Indian office and business park assets. The divestment signals a shift in its approach, opening room for fresh capital deployment into new growth opportunities while ensuring returns to its unitholders remain stable.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onCapitaLand India Trustdivestoffice assetsCyberValeCyberPearlViko GroupCapitaLand India Trust Managementchennaiavance hyderabadclint.viko group(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
