CHENNAI: Singapore-based CapitaLand India Trust (CLINT) will acquire three industrial facilities of Casa Grande Group with a total net leasable area of 0.79 million sq ft at OneHub Chennai for Rs 268 crore (Singapore dollars $43.2 million).
This will include CLINT’s partial funding for the lease of the project land and full funding for the development of the project.
According to a release, CLINT has entered into a forward purchase arrangement with Casa Grande where in it will provide funding in three phases and subsequently acquire the facilities upon completion of the construction of each phase, subject to a stabilisation period of six months for leasing.
The acquisition of Phase 1 is expected to be completed by the first half of 2025. Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management Pte. Ltd. (the Trustee-Manager of CLINT), said: “The acquisition will further diversify CLINT’s portfolio and grow its industrial presence in Chennai, which is developing into an important hub for electronics component manufacturers in South India. "
"It will also enable us to offer our tenants high-quality facilities at OneHub Chennai, an established industrial township with plug and play infrastructure. With our forward purchase agreements, we have a pipeline of industrial assets at strategic locations, allowing us to capitalise on the growing demand from global companies looking to set up industrial facilities in India," Dasgupta said.
This follows CLINT’s earlier forward purchase transactions with Casa Grande Group for three industrial facilities at Mahindra World City.
The transaction offers CLINT further diversification into the industrial asset class and fits the Trustee-Manager’s strategy to invest in high-quality logistics and industrial assets.
Jointly developed by CapitaLand Development, Mizuho Bank and JGC Corporation, OneHub Chennai is an approximately 1,250 acre integrated industrial park with established infrastructure. It is occupied by blue-chip companies including Hitachi Automotive Systems, Yamaha Music, and Daicel Corporation.