CapitaLand India Trust’s First Major Asset Divestment Unlocks S\$161.7 Million: What Investors Need to Know

Summary of Key Points

• CapitaLand India Trust (CLINT) has entered into an agreement to divest two major assets, CyberVale in Chennai and CyberPearl in Hyderabad, to an unrelated third party for INR11,031 million (approx. S\$161.7 million).
• This is CLINT’s first divestment since its listing in 2007, marking a significant strategic milestone for the trust.
• The assets are being sold at a ~3% premium over their independently assessed valuations as of 31 December 2024.
• Net proceeds from the divestment are estimated at INR10,828 million (approx. S\$158.8 million), after factoring in transaction costs.
• The divestment is part of CLINT’s capital recycling strategy aimed at enhancing portfolio quality and financial agility.

Detailed Analysis of the Transaction and Implications for Shareholders

CapitaLand India Trust (CLINT) has made a groundbreaking move by announcing its inaugural asset divestment since its listing in 2007. The trust is selling CyberVale, an IT Special Economic Zone (~0.8 million sq ft) and Free Trade Warehousing Zone (~0.2 million sq ft) located in Mahindra World City, Chennai, along with CyberPearl, a ~0.4 million sq ft IT Park in HITEC City, Hyderabad. The total transaction value is INR11,031 million, equivalent to approximately S\$161.7 million. This price represents a 3% premium to the assets’ independent valuations as of 31 December 2024, signaling a strong market demand and successful asset management by CLINT.

Investors should note that the net proceeds, after transaction costs, are expected to be INR10,828 million (approximately S\$158.8 million). The ability to execute the sale at a premium underscores both the quality of CLINT’s assets and the effectiveness of its management team. This divestment is a key part of CLINT’s proactive capital recycling strategy. By unlocking value from mature assets, the trust is positioning itself to redeploy capital into higher-yielding projects, repay debt, and potentially enhance distributions to unitholders.

According to CEO Mr. Gauri Shankar Nagabhushanam, “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.”

Portfolio Reshaping and Strategic Outlook

Post-divestment, CLINT’s total completed floor area will stand at approximately 21.2 million sq ft. In Chennai, the trust will retain International Tech Park Chennai, three industrial facilities, and one data centre under development. In Hyderabad, the portfolio will include International Tech Park Hyderabad, aVance Hyderabad, and one data centre under development. CLINT’s overall portfolio remains sizable and diversified, with a focus on IT business parks, industrial, logistics, and the fast-growing data centre segment.

As of 30 June 2025, CLINT’s assets under management total S\$3.7 billion. The trust’s portfolio spans 10 IT business parks, three industrial facilities, one logistics park, and four data centre developments, covering 22.7 million sq ft across Bangalore, Chennai, Hyderabad, Pune, and Mumbai. This divestment provides CLINT with additional flexibility to respond to new investment opportunities and market shifts, especially in India’s rapidly evolving IT and logistics sectors.

Price-Sensitive Considerations for Shareholders

• First-ever asset divestment since listing: This demonstrates a shift in portfolio management approach, potentially leading to higher returns and more dynamic capital allocation.
• Sale at a premium: Achieving a premium to independent valuations may signal strong asset quality, which could have positive implications for the trust’s net asset value and market perceptions.
• Potential impact on distributions: Management has indicated that proceeds could be used to enhance distributions, repay debt, or reinvest in higher-yielding projects. Investors should monitor future announcements for specifics on how the capital will be redeployed.
• Portfolio concentration shift: The removal of ~1.4 million sq ft from the portfolio reduces exposure to the Chennai and Hyderabad IT park markets, with a greater focus on remaining assets and development projects.
• Increased agility for future investments: With the strengthened balance sheet, CLINT can pursue accretive acquisitions, particularly in high-growth asset classes such as data centres and logistics, enhancing long-term shareholder value.

About CapitaLand India Trust and CapitaLand Investment Limited

CLINT is Asia’s first Indian property trust, listed on SGX since August 2007, and structured as a business trust offering stable income distributions akin to a real estate investment trust. Its Trustee-Manager is a wholly owned subsidiary of CapitaLand Investment Limited (CLI), a leading global real asset manager with S\$117 billion in funds under management. CLI is focused on scaling fund management, lodging, and commercial management globally, with sustainability and innovation at its core. CLI aims to achieve Net Zero carbon emissions for Scope 1 and 2 by 2050.

Investor Takeaways

This landmark divestment is a clear signal of CLINT’s strategic shift towards portfolio optimisation and capital agility. The sale at a premium, the potential for enhanced distributions, and the opportunity for accelerated growth in emerging asset classes position CLINT for a positive re-rating. Investors should closely monitor future developments regarding the deployment of sale proceeds and new investment opportunities, as these could have significant implications for both income and capital appreciation.

For further queries:

Clarisse Ong Qiuying
Senior Manager, Listed Funds – Investor Relations
Tel: (65) 6713 3671
Email: [email protected]

Disclaimer

This article contains forward-looking statements based on current management views and available information. Actual outcomes may differ due to various risks, uncertainties, and assumptions. This article is for informational purposes only and does not constitute an offer to buy or sell any securities. Past performance is not indicative of future results. Investors are advised to conduct their own due diligence and consult professional advisors before making any investment decisions.

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