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CapitaLand India Trust (CLINT) raised INR 915 crore via its first onshore bond issuance, aiming to improve distributions per unit by around 3.8% while reducing currency risk and optimizing tax efficiency. Currently, only 16% of its debt is India-based, but the trust plans to scale this to 40-50% in the next few years. CLINT is advancing key office and data center projects in Bengaluru and Hyderabad and has sold a partial 20.2% stake in its data center portfolio. Strong leasing, rental growth, and operational efficiency supported a 22% rise in distributable income.
CapitaLand India Trust (CLINT) successfully raised INR 915 crore through its first onshore bond in India. The trust's CEO, Gauri Shankar Nagabhushanam, said this move is intended to deliver a 3.8% increase in distribution per unit (DPU), provide a natural hedge against currency volatility, and optimize tax efficiency. Advertisement
Currently, only 16% of CLINT's loan book is India-based. The management aims to increase this share to 40-50%, translating to S$800 million S$1 billion, over the next two-and-a-half to three years as existing offshore debt matures. This is part of a strategic shift to strengthen the trust's local debt base and improve financing efficiency.
CLINT has entered into a forward purchase agreement for a 1.1 million sq ft office project in North Bengaluru with local developer Maya, expected to be completed in 2028. Simultaneously, it is redeveloping more than one million sq ft in Hyderabad after demolishing older structures. These projects highlight the trust's focus on key commercial markets with growth potential.
The data center segment is also gaining momentum. Buildings 1 and Towers 1 and 2 have been pre-committed to a global hyperscaler. The CEO noted that recent tax incentives for data centers provide strong support to position India competitively against peers such as Vietnam and Malaysia. While development yields for data centers are around 10.5%, roughly 100 basis points lower than Grade-A office space, these assets are prioritized for long-term capital appreciation and institutional demand.
CLINT also sold a 20.2% stake in its data center portfolio for approximately S$99 million, achieving a valuation 14% above book value. The trust's portfolio includes 22 million sq ft of income-producing assets with an occupancy of 91%, and operational efficiency has improved with operating margins rising from 74% to 75-76%.
For 2025, CLINT reported a 12% increase in revenue and a 16% growth in net profit. Distributable income rose by 22%, and portfolio valuation in INR terms increased 19%, supported by strong leasing velocity and rental reversions of 21%. Despite currency depreciation challenges, the net asset value remained stable compared to 2024, and Indian investors saw an effective total return of around 34-35% due to the combination of a 6.5% dividend yield in Singapore dollars and currency gains.
While some sub-markets, such as Hinjewadi in Pune, faced infrastructure challenges last year, CLINT is optimistic that upcoming metro connectivity will improve performance. The trust plans a balanced strategy of selective acquisitions and divestments to maintain a diversified portfolio, targeting about one-third non-office assets.
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