July 11, 2019, India – Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust” and the Trustee-Manager of a-iTrust, the “Trustee-Manager”), is pleased to announce that it has entered into a construction funding and forward purchase agreement with a subsidiary of Arshiya Limited (the “Vendor”). This is for development of an additional warehouse with total leasable area of 325,503 square feet at the Arshiya Free Trade Warehousing Zone, Panvel, near Navi Mumbai (“Panvel FTWZ”). It will be acquired by a-iTrust upon completion1 and leasing.
About the Property
In February 2018, a-iTrust completed the acquisition of six operating warehouses at Panvel FTWZ, which is a 143 acre site with additional development potential of at least 2.8 million square feet. Along with the initial acquisition, a-iTrust acquired the rights to extend construction funding and acquire future warehouses to be developed by the Vendor at Panvel FTWZ.
With its high-quality infrastructure and facilities, Panvel FTWZ has attracted multi-national customers, such as DHL Logistics, Rolex Logistics (3PL2 for Cisco Systems) and Huawei.
The six operating warehouses are already near full occupancy. To meet incremental demand from existing and prospective tenants, a-iTrust has now entered into an agreement to fund the construction of an additional warehouse which will be acquired upon completion.
The total construction funding is expected to not exceed INR 700.0 million / SGD 13.7 million3. Total consideration for the transaction is estimated at INR 2,149.3 million / SGD 42.1 million (which includes an estimated deferred consideration of INR 212.3 million / SGD 4.2 million).
Once acquired, a-iTrust will lease the additional warehouse to a subsidiary company of the Vendor for six years under a master lease arrangement. The Vendor will pay rent to a-iTrust andoperate and manage the warehouse.
Mr Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed construction funding of the new warehouse, upon completion, will further enhance a-iTrust’sposition in the fast-growing logistics sector in India. We are seeing increased tenant demand since our initial acquisition of the six operating warehouses at Panvel FTWZ.”