New Delhi, Mar 5: Ascendas India Trust (a-iTrust) has agreed to acquire an under-construction industrial project from Casa Grande group in Chennai.
Ascendas Property Fund Trustee Pte Ltd, the trustee-manager of a-iTrust said it has entered into a “forward purchase agreement” with Casa Grande group to acquire its first industrial facility located at Mahindra World City, Chennai.
A-iTrust will also provide funding for the development of the project as part of the forward purchase arrangement, a company statement said, but did not disclose the deal value.
The project is an industrial facility with a net leasable area of about 0.42 million square feet. The construction work is expected to complete by mid-2021.
It is fully pre-leased to Pegatron Technology India, a wholly-owned subsidiary of Pegatron Corporation, a Taiwanese contract electronics manufacturer.
A-iTrust would fund the balance development of the project and subsequently acquire the asset. Upon completion of the project and fulfilment of other key conditions, a-iTrust would purchase 100 per cent of the shares of the entity developing the project.
Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager, said, “The proposed acquisition will add exposure to the industrial asset class and diversify our portfolio.”
The industrial segment has been resilient through the pandemic, he added.
A-iTrust also has the option to provide additional funding to develop industrial facilities of about 0.37 million square feet, subject to leasing milestones and other conditions being met.
The transaction offers a diversification opportunity for a-iTrust into the industrial asset class and fits the investment strategy to invest in quality logistics and industrial assets.
As a result of the acquisition of this industrial facility, a-iTrust’s committed portfolio size will increase by 1.9 per cent from about 22.8 million square feet to 23.2 million square feet.
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’s asset under management stood at Singapore dollar 2.1 billion, as on December 31, 2020.
A-iTrust’s portfolio comprises seven IT business parks and one logistics park in India. (PTI)
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