Ascendas India to buy Phoenix Infocity Assets for Rs 855cr

Ascendas India Trust (a-iTrust), an Indian property trust managed by Singapore-based Ascendas Property Fund Trustee Private Limited, has signed an agreement with Phoenix Infocity Private Limited to acquire its portfolio of five buildings in Hitec City 2 Special Economic Zone, Hyderabad, in a deal valued at Rs 855 crore.

Of these, two of the buildings, with a total super built up area of 4 lakh sq ft completed and fully occupied, will be acquired with immediate effect for Rs 173.9 crore. The other three buildings, with a total area of 18 lakh sq ft, will be acquired as and when each is completed and is leased out. This is expected to be completed in next 4-5 years. The pricing of these three buildings, which is estimated at Rs 680.8 crore, will be based on the net property income achieved at the time of acquisition, an Ascendas statement said.

According to the deal, a-iTrust has the flexibility to acquire the buildings even when they are partially leased, by paying first for what has been leased, and paying for the balance space as and when it is leased.

The Trust will invest in the construction of the buildings, by subscribing to interest bearing convertible debentures during the construction of the buildings, subject to conditions of pre-leasing of the buildings and the trust