Ascendas India to buy 1.65 mn sq ft at Bengaluru IT Park for Rs 1,441 crore
Ascendas India Trust will acquire 1.65 million sq ft area at an IT park in Bengaluru for an estimated deal value of Rs 1,441 crore, according to a statement
Ascendas India Trust (a-iTrust) will acquire 1.65 million sq ft area at an IT park in Bengaluru for an estimated deal value of Rs 1,441 crore, according to a statement.
Ascendas Property Fund Trustee Pte Ltd, the Trustee-Manager ofa-iTrust, has entered into a forward purchase agreement with Gardencity Realty Pvt Ltd to acquire two buildings in an IT Park with a total net leasable area of up to 1.65 million sq ft located at Hebbal, Bengaluru.
a-iTrust will provide funding for the development of the project as part of the forward purchase arrangement, the company said in a statement.
It will subsequently acquire a net leasable area of up to 1.65 million sq ft in two buildings spread across two land parcels.
Initially, and during the construction period, a-iTrust's investment in the construction of the project will be through debt.
"The proposedacquisition will provide an opportunity to establish our presence in Hebbal, one of Bangalore'supcoming IT/ITeS micro-markets, which is currently witnessing stable demand and rent," said Sanjeev Dasgupta, chief executive officer of the Trustee-Manager.
Theimproving connectivity and infrastructure near the project would benefit our tenants in the future, he added.
a-iTrust will provide funding towards development of the project of about Rs 828 crore.
Upon the project obtaining the occupancy certificate and fulfilment of other key conditions, a-iTrust shall purchase 100 per cent 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 Rs 14.41 billion (268.2 million Singapore dollar).
As a result of the acquisition of these two IT buildings, a-iTrust's portfolio size (including pipeline projects) will increase by 7.2 per cent from 23.2 million sq ftto 24.9 million sq ft.
a-iTrust was listed on the Singapore Exchange Securities Trading Ltd (SGX-ST) in August 2007 as the first Indian property trust in Asia.
Its principal objective is to own income-producing real estate used primarily as business space in India.
a-iTrust may also develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion. As at December 31, 2020, a-iTrust's asset under management stands at 2.1 billion Singapore dollar.
a-iTrust's portfolio comprises seven world-class IT business parks and one logistics park in India. It is structured as a business trust, offering stable income distributions similar to a real estate investment trust (REIT).
a-iTrust is managed by Ascendas Property Fund Trustee Pte Ltd. The trustee-manager is a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia's largest diversified real estate groups.
CapitaLand owns and manages a global portfolio worth 132.5 Singapore billion as at December 31, 2020.