Ramping up portfolio
CapitaLand India Trust has entered into a forward purchase agreement with Phoenix Group to acquire IT buildings with a total leasable area of 2.5 million sq ft in Hyderabad’s Hitec City, a major IT and office hub, where many large multinational companies are located. The acquisition of the strategically located assets is expected to increase CapitaLand’s earnings and distributions for unit holders. As part of the forward purchase arrangement, CapitaLand will provide funding of Rs.215 crore (S$34.68 million) to refinance the existing loan and receive interest on the funding at a rate, which is higher than its borrowing cost. It will also provide funding in future towards development of the buildings and acquire the buildings at a price to be determined as and when each building is constructed and leased up to 90 per cent. CapitaLand has a longstanding partnership with Phoenix Group since 2011, having acquired five buildings with about 2.1 million sq ft of total leasable area through a forward purchase agreement. The five buildings are located within CapitaLand’s business park, aVance Hyderabad and it plans to acquire another two buildings in aVance Hyderabad from Phoenix Group within the next 18 months. As at 31 March 2024, CapitaL and assets under management stand at S$3.1 billion and its portfolio includes 10 world-class IT business parks, three industrial facilities, one logistics park and four data centre developments in India, with total completed floor area of 21 million sq ft, spread across Bengaluru, Chennai, Hyderabad, Pune and Mumbai.
Ramping up portfolio
CapitaLand India Trust has entered into a forward purchase agreement with Phoenix Group to acquire IT buildings with a total leasable area of 2.5 million sq ft in Hyderabad’s Hitec City, a major IT and office hub, where many large multinational companies are located. The acquisition of the strategically located assets is expected to increase CapitaLand’s earnings and distributions for unit holders. As part of the forward purchase arrangement, CapitaLand will provide funding of Rs.215 crore (S$34.68 million) to refinance the existing loan and receive interest on the funding at a rate, which is higher than its borrowing cost. It will also provide funding in future towards development of the buildings and acquire the buildings at a price to be determined as and when each building is constructed and leased up to 90 per cent. CapitaLand has a longstanding partnership with Phoenix Group since 2011, having acquired five buildings with about 2.1 million sq ft of total leasable area through a forward purchase agreement. The five buildings are located within CapitaLand’s business park, aVance Hyderabad and it plans to acquire another two buildings in aVance Hyderabad from Phoenix Group within the next 18 months. As at 31 March 2024, CapitaLand assets under management stand at S$3.1 billion and its portfolio includes 10 world-class IT business parks, three industrial facilities, one logistics park and four data centre developments in India, with total completed floor area of 21 million sq ft, spread across Bengaluru, Chennai, Hyderabad, Pune and Mumbai.
Real expansion
Max Estates, the real estate arm of the Max Group, has signed a binding agreement for a residential development opportunity in Gurugram with gross development value potential of overs R9,000 crore. This 18.23- acre land parcel is contiguous to its existing 11.80 acres of land on Dwarka Expressway in sector 36 A, Gurugram on which the company had executed a joint development agreement last year. Max Estates is on track to launch Delhi NCR ’s first Inter-generational residential community in Q3 2024 with GD V potential now re-rated to Rs.4,000 crore. This helps Max Estates consolidate its position (about 30 acres) in sector 36 A on Dwarka Expressway, which has emerged as a prime luxury residential destination in Gurugram, with massive infrastructure upgrade. Both opportunities imply a combined GD V potential over time of about Rs.13,000 crore by developing and selling an area over 6.4 million sq ft. Established in 2016, Max Estates has developed a well-diversified portfolio of real estate across the two asset classes in Delhi NCR and, in this pursuit, has partnered with New York Life Insurance Co particularly for commercial office platform. Its marquee projects include a one-of-its-kind commercial office space Max Towers, on the edge of South Delhi, which opened its doors in 2019; Max House, a re-development of office campus; Max Square, located on a primary office vector, Noida Expressway; and 222 Rajpur, a luxury residential villa community on Rajpur Road, Dehradun.
Growth alliance
South Indian Bank has entered into an alliance with Northern Arc Capital, a leading NBFC , dedicated to empowering the lives of underserved individuals and businesses. The partnership is aimed at exploring and maximising business opportunities through combined efforts in the areas of loan origination, underwriting, disbursement, collection and reconciliation processes. The alliance will focus on co-lending and partnership lending activities, as well as facilitate seamless loan transfers between banks and originators. The partnership signifies a shared commitment to harnessing synergies, expertise and resources to enhance the efficiency and effectiveness of lending operations. By joining forces, South Indian Bank and Northern Arc Capital aim to capitalise on emerging market trends, diversify their portfolios and provide innovative financial solutions to a broader customer base. The partnership will enable South Indian Bank to leverage NPOS , Northern Arc’s proprietary technology platform for co-origination, co-lending and pool buyouts, as also to seamlessly connect with multiple originators for loan origination, underwriting, disbursement and reconciliation abilities