a-iTrust’s proposed acquisition will increase its portfolio size (including pipeline projects) by 7.2% from ~23.2 million sq ft to ~24.9 million sq ft.
Online PR News – 29-March-2021 – Singapore – Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust”), is pleased to announce that it has entered into a forward purchase agreement with Gardencity Realty Private Limited (“Vendor”) to acquire two buildings in an IT Park with a total net leasable area of up to 1.65 million square feet located at Hebbal, Bangalore. a-iTrust will also provide funding for the development of the project as part of the forward purchase arrangement.
About the Project
The Project comprises three buildings spread across two land parcels, with an aggregate net leasable area of approximately 2.26 million square feet. a-iTrust proposes to fund the development of the Project and subsequently acquire a net leasable area of up to 1.65 million square feet in two buildings spread across two land parcels (the “Transaction”).
Initially, and during the construction period, a-iTrust’s investment in the construction of the Project will be through debt. The forward purchase acquisition will take place after completion of the construction and is subject to the receipt of the occupancy certificate for the Project and other key conditions.
Mr Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition will provide an opportunity to establish our presence in Hebbal, one of Bangalore’s upcoming IT/ITES micro-markets, which is currently witnessing stable demand and rent. The improving connectivity and infrastructure near the Project would benefit our tenants in the future.”
Details of the Transaction
Pursuant to the terms of the funding documents, a-iTrust shall provide funding towards development of the Project of approximately INR 8.28 billion (S$154.1 million). Upon the Project obtaining the occupancy certificate and fulfilment of other key conditions, a-iTrust shall purchase 100% of the shares of the two entities developing the Project. The total purchase consideration for the Transaction would depend on certain factors, including final rentals achieved, and is currently estimated to be INR 14.41 billion (S$268.2 million).
Effect on portfolio
As a result of the acquisition of these two IT buildings, a-iTrust’s portfolio size (including pipeline projects) will increase by 7.2% from approximately 23.2 million square feet4 to approximately 24.9 million square feet.