The office project is part of a mixed-used development comprising office and retail space. AS part of the forward purchase agreement, CLINT will fully fund the development of the office project and receive interest on the funding at a rate which is higher than its borrowing cost.
CapitaLand India Trust (CLINT) is looking to acquire an office project in Nagawara, Outer Ring Road, Bangalore, for $233.6 million. This will be done through entering a forward purchase agreement with Maia Estates Offices.
The group says that the acquisition of this 1.13 million sq ft office project is expected to improve earnings and distributions for unitholders. Net profit is forecast to be $7.7 million on a stabilized basis, while distribution per unit is expected to increase from 6.84 cents to 6.98 cents.
