Bookmark & Share
Ascendas India Trust (a-iTrust) has inked a forward purchase agreement to acquire two buildings at AURUM IT Special Economic Zone (SEZ) in Navi Mumbai, India for up to INR 9.3 billion (S$186 million).
Pursuant to the agreement, the trust will first subscribe debentures issued by the co-developer to fund the properties’ construction cost amounting to INR 5.01 billion (S$100.2 million).
Thereafter, it will separately buy each building by acquiring the entire stake of the co-developer after two years from the properties’ respective completion date or upon achieving certain leasing milestones, whichever is earlier. The overall price will be determined based on a pre-agreed formula that takes into account key factors like rent, occupancy and capitalisation rates, but the total amount is not expected to surpass INR 9.3 billion.
The first building has a built-up area of 0.6 million sq ft, while the second measures 0.8 million sq ft. They are targeted for completion by H2 2018 and early-2020 respectively. Both are part of the SEZ, which houses two other properties collectively spanning 1.5 million sq ft, for which a-iTrust has the right of first refusal.
“The proposed acquisition of the two buildings in AURUM IT SEZ marks our foray into the IT Park business in Navi Mumbai, which is an important market for large multi-national corporations,” said Sanjeev Dasgupta, CEO of Ascendas Property Fund Trustee.
“The properties are strategically located on Thane-Belapur Expressway, a key IT corridor in Mumbai. The property is in proximity to the Mumbai suburban network train station and in proximity to campuses of other large Indian corporations. The acquisition will further diversify our portfolio and is expected to contribute positively to the financial performance of the Trust.”
Upon acquisition of both buildings, a-iTrust’s portfolio is anticipated to increase by 11 percent to 14.2 million sq ft, with Mumbai properties accounting for 16 percent, up from the current 7.0 percent.
a-iTrust’s Manager Ascendas Property Fund Trustee is a subsidiary of Ascendas-Singbridge, which in turn is a 51:49 joint venture between Temasek Holdings and JTC Corporation.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
Related Articles:
Ascendas Reit completes sale of No. 84 Genting Lane