Ascendas India Trust signs definitive agreements for the acquisition of aVance 6 in Hyderabad
Ascendas India Trust - Signing of definitive agreements for the acquisition of aVance 6 in Hyderabad
Singapore, 16 February 2021 – Ascendas Property Fund Trustee Pte. Limited., in its capacity as Trustee-Manager of Ascendas India Trust (a-iTrust), is pleased to announce that it has entered into definitive agreements (Agreements) for the proposed acquisition of aVance 6 at HITEC City, Hyderabad.
The Agreements were executed with the shareholders of Phoenix IT Infrastructure India Private Limited to acquire an IT SEZ building with a total floor area of approximately 639,495 square feet for a gross consideration of approximately INR 5.06 billion1 (SGD 92.03 million2). Approximately 98.3% of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India) Private Limited (Amazon).
The proposed acquisition will be the fifth building acquired by a-iTrust from the Phoenix Group. In February 2012, a-iTrust acquired aVance 1 & 2, totaling 427,700 square feet, in July 2015, aiTrust acquired aVance 3, totaling 682,900 square feet and in April 2017, a-iTrust acquired aVance 4, totaling 390,000 square feet. aVance 5 is currently under construction.
Mr 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. The improving connectivity and enhancement work being carried out at aVance, HITEC City, Hyderabad would benefit our tenants in the future. We have already started seeing some leasing traction, with a large US based MNC having executed a Letter of Intent to lease aVance 5.”
1 Excludes transaction expenses (acquisition fee payable to the Trustee-Manager, stamp duty, professional and other fees, and acquisition expenses) and gross consideration is subject to adjustment based on the balance sheet of Phoenix IT Infrastructure India Private Limited (being the vehicle holding aVance 6 on completion of the transaction).
2 Based on an exchange rate of SGD 1: INR 55.0, for illustrative purposes.