CapitaLand India Trust Sells CyberVale and CyberPearl for S\$161.7 Million in First-Ever Divestment: Strategic Portfolio Overhaul Could Drive Share Value

Key Highlights

• CapitaLand India Trust (CLINT) announces its inaugural asset divestment since 2007, selling CyberVale (Chennai) and CyberPearl (Hyderabad) for INR11,031 million (~S\$161.7 million).
• Sale executed at a 3% premium to independent valuations as of 31 December 2024; net proceeds expected to be INR10,828 million (~S\$158.8 million).
• Divestment is part of a proactive capital recycling and portfolio reconstitution strategy.
• Potential uses of proceeds include debt reduction, reinvestment in higher-yielding assets, and enhanced unitholder distributions.
• Post-divestment, CLINT’s completed floor area stands at ~21.2 million sq ft, with continued presence and development in key Indian cities.
• CLINT’s assets under management total S\$3.7 billion as of June 2025, with a diversified portfolio across business parks, industrial, logistics, and data centres.

In-Depth Analysis for Investors

CapitaLand India Trust (CLINT), the Singapore-listed business trust with a focus on Indian business space, has announced a landmark deal: the sale of two major assets, CyberVale in Chennai and CyberPearl in Hyderabad, for a total of INR11,031 million (approximately S\$161.7 million). This transaction, finalized with an unrelated third party, marks CLINT’s first divestment since its IPO in 2007, signaling the beginning of a more aggressive capital recycling and portfolio optimization strategy.

The assets were sold at a premium—approximately 3% above their independent valuations as of 31 December 2024. The net proceeds from the transaction, after accounting for related costs, are expected to be INR10,828 million (~S\$158.8 million), providing immediate liquidity and strategic flexibility for the Trust going forward.

Asset Details

• CyberVale: Located in Mahindra World City, Chennai, comprises about 0.8 million sq ft of IT Special Economic Zone space and 0.2 million sq ft of Free Trade Warehousing Zone.
• CyberPearl: Situated in Hyderabad’s HITEC City, offers approximately 0.4 million sq ft of IT Park space.

Strategic Rationale and Impact

According to Gauri Shankar Nagabhushanam, CEO of the Trustee-Manager, the divestment initiates CLINT’s capital recycling strategy, enabling the Trust to:

• Strengthen its balance sheet through potential debt repayment
• Reinvest in higher-yielding projects to further grow the portfolio
• Enhance distributions to unitholders

Following this divestment, the Trust will retain a robust portfolio with approximately 21.2 million sq ft of completed floor area. In Chennai, CLINT’s presence will include the International Tech Park Chennai, three industrial facilities, and one data centre under development. In Hyderabad, the Trust remains invested in International Tech Park Hyderabad, aVance Hyderabad, and one data centre under development.

Portfolio and Strategic Focus

CLINT manages a diversified real estate portfolio that, as of 30 June 2025, includes 10 world-class IT business parks, three industrial facilities, one logistics park, and four data centre development projects across Bangalore, Chennai, Hyderabad, Pune, and Mumbai—totaling a completed floor area of 22.7 million sq ft and S\$3.7 billion in assets under management.

The Trust’s strategy is to capitalize on India’s rapidly growing IT and logistics/industrial sectors, while also expanding into data centre assets to diversify income streams. It operates as a business trust, providing stable income distributions similar to a REIT, and is managed by CapitaLand India Trust Management Pte. Ltd., a subsidiary of CapitaLand Investment Limited (CLI).

Implications for Shareholders

• First Divestment Since Listing: This transaction breaks a nearly two-decade pattern and could signal more active portfolio management ahead, potentially unlocking further value.
• Potential for Higher Distributions: The proceeds may be used to boost unitholder payouts or fund accretive new investments if not fully deployed towards debt reduction.
• Premium to Valuation: The sale at a premium suggests the assets’ strong market demand and CLINT’s ability to command favorable terms, which may enhance investor confidence in asset valuations across the rest of the portfolio.
• Financial Agility: Reducing leverage and recycling capital into higher-yielding assets can improve earnings quality and future growth prospects.

About CapitaLand Investment Limited (CLI)

CLI, the parent company, is a leading global real asset manager with S\$117 billion of funds under management as of August 2025. Its portfolio spans retail, office, lodging, logistics, industrial, data centres, and more. CLI is committed to sustainability, aiming for Net Zero carbon emissions for Scope 1 and 2 by 2050.

Investor Takeaways

This inaugural divestment is a potentially price-sensitive event that could impact CLINT’s share value positively. It reflects a shift toward a more dynamic capital management approach, enhanced liquidity, and the potential for increased unitholder returns. Investors should monitor for further portfolio changes and updates on the deployment of sale proceeds, as these could influence earnings and distributions in upcoming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. The views expressed are based on currently available information and may be subject to change.

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