Ascendas to acquire 5 Buildings in Hyderabad
Ascendas Property Fund Trustee Pvt Lted, the Trustee-Manager of Ascendas India Trust ("a-iTrust"), has reached agreement with Phoenix Infocity Private Limited ("Phoenix") to acquire its portfolio of 5 buildings in Hitec City 2 Special Economic Zone, Hyderabad ("the Properties").
Two of the buildings are completed and 100% occupied, while the other 3 buildings are expected to be completed over the next 4 to 5 years. a-iTrust will immediately acquire the two completed buildings, with a total Super Built-up Area1 ("SBA") of 0.4 million sq ft, for Rs 1,739 million (S$ 50.4 million2). The remaining 3 buildings, with a total SBA of 1.8 million sq ft, will be acquired as and when each building is completed and leased. The pricing of the 3 buildings will be based on the net property income achieved at the time of acquisition, and is presently estimated at Rs 6,808 million (S$ 197.4 million).
This transaction is expected to be accretive to Distribution per Unit ("DPU"), with immediate accretion from the 2 completed buildings, and further accretion as the trust acquires the other three buildings. a-iTrust’s presence in Hyderabad will also grow significantly, from the current 1.7 million sq ft owned to 3.9 million sq ft when all of the 5 buildings are acquired. The acquisition will strengthen a-iTrust’s position to capture the opportunities provided by the rapid growth of India’s Information Technology (IT) industry.