Ascendas India Trust completes acquisition of IT-SEZ building at Navi Mumbai for Rs 353 cr

Ascendas Property Fund Trustee Pte Ltd, in its capacity as Trustee-Manager of a-iTrust, announced that it has completed the acquisition of Building Q1, a 0.62 million square feet multi-tenanted IT SEZ building, in Aurum Q Parc at Navi Mumbai. This is pursuant to the forward purchase arrangement.

Ascendas India Trust (a-iTrust) on Tuesday said it has completed the acquisition of IT-SEZ building at Navi Mumbai for Rs 353 crore. Ascendas Property Fund Trustee Pte Ltd, in its capacity as Trustee-Manager of a-iTrust, announced that it has ''completed the acquisition of Building Q1, a 0.62 million square feet multi-tenanted IT SEZ building, in Aurum Q Parc at Navi Mumbai.'' This is pursuant to the forward purchase arrangement. The definitive agreements for the acquisition have been executed to acquire all of the issued share capital of a firm which owns the Building Q1 for a gross consideration of approximately Rs 3.53 billion. The company said that about 54 per cent of Building Q1 has been leased to multinational companies such as Hexaware Technologies Ltd and FirstRand Services Pvt Ltd. Additionally, deferred consideration is payable for incremental leasing within 12 months from the date of the acquisition. Building Q1 is the first of the two buildings covered in the May 2018 forward purchase agreement for the development of a 1.4 million square feet IT park campus in Aurum Q Parc. Building Q2 is about 0.8 million square feet for which the occupancy certificate has been obtained. Additionally, a-iTrust has the right of first refusal on a third building of about 1.1 million square feet. Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager, said, ''The acquisition of Building Q1 will enable a-iTrust to gain an operating presence in the strategic IT corridor of Navi Mumbai.'' He expected the property's occupancy to stabilise by 2023. ''We will continue to diversify and strengthen our portfolio, while maintaining our firm commitment to deliver sustainable returns to our unitholders,'' he said. Ascendas India Trust (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 of 30 June 2021, a-iTrust's asset under management stands at Singapore dollar 2.2 billion. a-iTrust's portfolio comprises IT business parks and one logistics park in India.

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