Ascendas Property Fund Trustee, the trustee-manager of Ascendas India Trust, (a-iTrust) has entered into a forward purchase agreement with Phoenix Ventures.
Ascendas Property Fund Trustee will acquire two buildings, aVance A1 & A2, with a combined leasable area of approximately 1.85 million square feet, in aVance Business Hub 2, located in HITEC City, Hyderabad.
The sales price is INR 14,000 million ($204.93 million).
a-iTrust will also provide construction funding to the co-developer entities of the two buildings as part of the agreement.
“The proposed acquisition of aVance A1 & A2 will allow us to further strengthen our presence in Hyderabad, which is currently witnessing robust rental growth arising from healthy demand from global IT companies,” said Sanjeev Dasgupta, CEO of the trustee-manager. “The location within the city’s prime IT Corridor in in Hi-Tec City is contiguous to aVance Business Hub where we own 1.5 million square feet, [excludes proposed acquisition of aVance 5 and 6]. This would help our tenants to gain economies of scale while offering their employees access to transportation and proximity to retail and residential hubs.”
aVance Business Hub 2 comprises seven buildings to be developed on approximately 14.4 acres of land. In May 2018, a-iTrust had entered into a master agreement with the vendor to acquire five out of the seven future buildings.
a-iTrust has now entered into a forward purchase agreement to fund the construction of the first two buildings (aVance A1 & A2) in aVance Business Hub 2. aVance A1 has a leasable area of approximately 0.86 million square feet and aVance A2 has a leasable area of approximately 0.99 million square feet. Both buildings will be acquired individually when completed, subject to required leasing levels being met, among other conditions.
