IT SEZ building in Hitec City set to change hands for ₹506 crore

Ascendas inks pacts to acquire aVance 6 from Phoenix

Ascendas Property Fund Trustee Pte on Tuesday said as Trustee-Manager of Ascendas India Trust it has entered into definitive agreements to acquire an IT SEZ building ‘aVance 6’ in Hitec City from the Phoenix Group for ₹ 506 crore.

The building has a floor area of around 6,39,495 square feet. Over 98% of aVance 6 has been leased by Amazon Development Center (India). A statement from Ascendas said the definitive agreements, for the proposed acquisition, were executed with the shareholders of Phoenix IT Infrastructure India, the vendor, for a “gross consideration of approximately ₹5.06 billion (Singapore dollar 92.03 million).”

Fifth building

It will be the fifth building that Ascendas India Trust will acquire from the Phoenix Group. In February 2012, it had acquired aVance 1 and 2, totalling 427,700 sq ft; in July 2015 aVance 3 (682,900 sq ft); and in April 2017 aVance 4 (390,000 sq ft). aVance 5 is currently under construction.

CEO of the Trustee-Manager Sanjeev Dasgupta said, “The proposed acquisition provides Ascendas India Trust 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 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,” he said.

Ascendas India Trust was listed on the Singapore Exchange Securities Trading (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. It 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, its asset under management stands at Singapore $2.1 billion, the release said.

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