Singapore-listed property trust CapitaLand India Trust ( Clint ) has entered into an agreement to divest its CyberVale property in Chennai and CyberPearl property in Hyderabad to an unrelated third party for 11.03 billion Indian rupees ( US$125.65 million )

This marks Clint’s first divestment since its listing in 2007, the company states, and is a key step in its pro-active portfolio reconstitution efforts to unlock asset value and strengthen financial agility. 

The two assets will be divested at approximately 3% premium to their independent valuations as at December 31 2024. The net proceeds from the divestment are expected to be 10.83 billion rupees.

CyberVale comprises a 0.8 million square foot ( sq ft ) IT Special Economic Zone and a 0.2 million sq ft Free Trade Warehousing Zone in Mahindra World City, while CyberPearl is a 0.4 million sq ft IT Park in HITEC City.

Upon the divestment of CyberVale and CyberPearl, which together have a total area of 1.4 million sq ft, Clint’s total completed floor area across its entire portfolio will stand at 21.2 million sq ft.  In Chennai, the company’s portfolio will comprise International Tech Park Chennai, three industrial facilities and one data centre under development. In Hyderabad, its portfolio will comprise International Tech Park Hyderabad, aVance Hyderabad and one data centre under development.

“The successful divestment of CyberVale and CyberPearl marks the commencement of our capital recycling strategy to optimize Clint’s portfolio and enhance our financial agility,” says Gauri Shankar Nagabhushanam, the CEO of CapitaLand India Trust Management ( the trustee-manager of Clint ). “By divesting these two assets, we have the option to utilize the proceeds to strengthen our balance sheet through debt repayment, recycle capital into higher-yielding projects to further grow the company’s portfolio and enhance distributions to unitholders.”