NEW DELHI: CapitaLand India Trust (CLINT) has raised ₹915 crore through its first-ever onshore bond issuance in India, informed Gauri Shankar Nagabhushanam, chief executive officer (CEO) of the company. The move is expected to deliver a 3.8% distribution per unit (DPU) accretion, as the trust looks to hedge against currency volatility and optimize tax efficiencies.
While currently only 16% of the loan book is based in India, the management aims to scale this to 40-50%, translating to over USD 1 billion, within the next two-and-a-half to three years as existing offshore tenors mature.
The company has entered into a forward purchase agreement for a 1.1 million sq ft office space in North Bengaluru with local developer Maya, with an expected completion date in 2028. Simultaneously, a major redevelopment project is underway in Hyderabad, where over one million sq ft is being built following the demolition of an older structure.
Its data center portfolio has also gained substantial momentum, with building 1 and Towers 1 and two already pre-committed to a global hyperscaler. Nagabhushanam noted that the recent tax holiday for data centers has provided “definitive ammunition” to position India competitively against regional peers like Vietnam and Malaysia. While data centers currently offer development yields of about 10.5%, roughly 100 basis points lower than Grade-A office spaces, they are being prioritized for their superior capital appreciation and long-term institutional demand.
The trust has secured a partial 20.2% stake sale in its data center portfolio for approximately USD 99 million, achieving a valuation 14% above the book value.
While some sub-markets like Hinjewadi in Pune faced infrastructure hurdles in 2025, the company remains optimistic about a performance uptick following the completion of upcoming metro connectivity.
For 2026, it plans a dual approach of selective acquisitions and divestments to maintain a portfolio mix of one-third non-office assets.
CLINT posted a 12% increase in top-line revenue, while the bottom line grew by 16%. The distributable income saw a 22% surge while the portfolio valuation in INR terms also witnessed a 19% increase, driven largely by strong leasing velocity and rental reversions, which stood at 21% for the year.
It reported a gearing level of 39.6%, which remains in line with Singapore-listed REIT averages. The company’s cost of debt was recorded at 5.6%. Operational efficiency also saw an uptick, with operating margins improving from 74% to approximately 75-76% during the period.
Occupancy held steady at 91% across its 22 million sq ft of income-producing space. Despite currency depreciation challenges, the net asset value (NAV) remained stable and broadly in line with 2024 levels. For Indian investors, the combined effect of a 6.5% dividend yield in Singapore dollar terms and currency appreciation resulted in an effective total return of approximately 34-35 percentage points for 2025.
