Ascendas India Trust said on February 16 that it will acquire an IT-SEZ building in Hyderabad from Phoenix Group for Rs 506 crore.
Ascendas Property Fund Trustee Pte. Limited, in its capacity as Trustee-Manager of Ascendas India Trust, has entered into definitive agreements for the proposed acquisition of aVance 6 at HITEC City, Hyderabad, the company said in a statement.
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 Rs 5.06 billion (Rs 506 crore).
Approximately 98.3 percent of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India) Private Limited, the company said.
The proposed acquisition will be the fifth building acquired by a-iTrust from Phoenix Group. In February 2012, a-iTrust acquired aVance 1 and 2, totaling 427,700 square feet, in July 2015, a-iTrust acquired aVance 3, totalling 682,900 square feet and in April 2017, a-iTrust acquired aVance 4, totalling 390,000 square feet. aVance 5 is currently under construction.
“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,” said Sanjeev Dasgupta, chief executive officer of the trustee-manager.
Ascendas India Trust (a-iTrust) was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in August 2007 as the first Indian property trust in Asia.