L&T Realty and Singapore-listed CapitaLand India Trust Management Pte Ltd have agreed to set up a commercial platform for the development of 6 million square feet of premium office space across Mumbai, Bengaluru and Chennai.
Both the companies have entered into a non-binding term sheet for setting up of this commercial platform. The definitive agreements have not been signed.
L&T Realty is the real estate development arm of L&T, while CapitaLand India Trust Management Pte Ltd is trustee-manager of CapitaLand India Trust (CLINT).
Under this platform, L&T will build and develop office spaces, while CLINT will market the office spaces.
"Depending on the completion of these developments, CLINT expects majority of the capital commitment for the projects to start from 2H 2024 onwards. CLINT will acquire the ownership of these properties in a phased manner," a statement said on Monday.
Shrikant Joshi, CEO and MD of L&T Realty, said the Indian office leasing market continues to grow with the demand for quality office space from international and domestic clients.
"The net absorption space for January-September 2022 period stood at a three-year high of 30.3 million square feet. We are delighted to have forged partnership with CLINT for premium office space in the three top metropolises of India," he added.
Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager, said the proposed commercial platform provides CLINT an opportunity to scale up its presence across three major cities in well-established micro-markets.
"Furthermore, L&T's strong track record in project development and CLINT's extensive customer network and leasing capabilities will create synergies across the platform," he added.
L&T Realty has presence in Mumbai, Navi Mumbai, Bengaluru, Chennai and NCR, with a diverse portfolio of residential, commercial and retail developments.
CLINT, formerly known as Ascendas India Trust (a-iTrust), was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in August 2007 as the first Indian property trust in Asia.
Its principal objective is to own income-producing real estate used primarily as business space in India.
As at 30 June 2022, CLINT's assets under management stand at Singapore dollar 2.5 billion.
CLINT's portfolio includes eight world-class IT business parks, one logistics park, one industrial facility and one data centre development in India, with a total completed floor area of 15.5 million square feet spread across Bengaluru, Chennai, Hyderabad, Pune and Mumbai.
The trustee-manager is a wholly owned subsidiary of Singapore-listed CapitaLand Investment Ltd, a leading global real estate investment manager with a strong Asia foothold.