Acted for AIGP2 Fund Pte. Ltd. (“Vendor“) in its sale of 70.0% of its interest in AIGP2 Chennai 1 Pte. Ltd. (the “Target“), being 70.0% of the issued share capital of the Target (the “Sale Shares“). The Target indirectly owns International Tech Park Chennai, Radial Road, an upcoming business park in Chennai.
The Sale Shares were acquired by CapitaLand India Growth Fund 2 Pte. Ltd. (“Purchaser“), a business park development fund launched by CapitaLand Investment Limited, where around 50% of the fund size of S$400 million was contributed by Mitsubishi’s real estate arm.
As Mitsubishi was contributing about 50% of the fund size, tripartite negotiations among the Vendor, Purchaser and Mitsubishi took place. This translated to the transaction documents also addressing India law-related concerns, as well as concerns unique to Japanese investors, such as specific warranties relating to “anti-social” conduct and groups.
The business park which is the underlying asset of the transaction is also an upcoming business park which offers two (2) blocks of Grade A office space and state-of-the-art infrastructure. The business park is also the first in India to be recognised as net zero at a design stage by the Indian Green Building Council, and it is also hoping to achieve a WELL Gold certification for the entire development. The WELL building standard is a standard to focus on enhancing health and wellness of a building’s occupants. The business park also includes sustainable features, such as the use of real-time data analysis and performance monitoring to improve the energy efficiency of the property.
Advising the Vendor were Partners Lawrence Tan, Goh Jun Yi and Janice Pui.
