Ascendas India Trust on Tuesday said it will acquire an IT-SEZ building in Hyderabad from Phoenix group for Rs 506 crore. Ascendas Property Fund Trustee, in its capacity as Trustee-Manager of Ascendas India Trust, has entered into definitive agreements for the proposed acquisition of aVance 6 at HITEC City, Hyderabad.
“The agreements were executed with the shareholders of Phoenix IT Infrastructure India to acquire an IT-SEZ building with a total floor area of approximately 6,39,495 square feet for a gross consideration of approximately Rs 5.06 billion (SGD 92.03 million),” a company statement said.
About 98.3 per cent of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India) Private Limited.
The proposed acquisition will be the fifth building acquired by Ascendas India Trust (a-iTrust) from the Phoenix Group.
In February 2012, a-iTrust acquired aVance 1 & 2, totaling 4,27,700 square feet.
In July 2015, a-iTrust acquired aVance 3, totaling 6,82,900 square feet; and in April 2017, a-iTrust acquired aVance 4, totaling 3,90,000 square feet.
aVance 5 is currently under construction.
Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio.”
Ascendas India Trust (a-iTrust) was listed on the Singapore Exchange Securities Trading Limited (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 stood at SGD 2.1 billion. a-iTrust’s portfolio comprises seven IT business parks and one logistics park in India.