CapitaLand India Trust entered into a forward purchase agreement with Phoenix Group to acquire IT buildings with a total leasable area of 2.5 million square feet (sq ft) in HITEC City, India. HITEC City is a major IT and office hub in Hyderabad where many large multinational companies are located. The acquisition of the strategically located assets is expected to increase CLlNT's earnings and distributions for Unitholders.

Pro forma net profit from the buildings is forecasted to be approximately SGD 4.5 million on a stabilized basis. Pro forma distribution per unit is expected to increase from 6.45 cents to 6.47 cents. As part of the forward purchase arrangement, CLINT will provide funding of INR2.15 billion (SGD 34.68 million)4 to refinance the existing loan and receive interest on the funding at a rate which is higher than its borrowing cost.

CLINT will also provide funding in future towards development of the buildings and acquire the buildings at a price to be determined5 as and when each building is constructed and leased up to 90%. The acquisition is attractive as its capitalization rate is higher compared to the market's capitalization rates.