The manager of Ascendas India Trust (a-iTrust) has entered into a forward purchase agreement with the Casa Grande Group to acquire two industrial assets, or Phase 2 of the Casa Grande project, located at Mahindra World City, Chennai. The trust will also provide funding for the development of the Phase 2 Project as part of the forward purchase arrangement.
This is in addition to the earlier forward purchase transaction announced on Mar 5, 2021 for a 0.42 million sq ft fully leased industrial facility, or Phase 1 of the Casa Grande project, within the same micro-market. The acquisition of Casa Grande – Phase 1 was completed on May 27.
The Phase 2 Project consists of two industrial facilities with net leasable area totalling 0.31 million sq ft. a-iTrust proposes to fund the development of the Phase 2 Project and subsequently acquire both facilities. The construction of Casa Grande – Phase 2 is expected to be completed by the second half of 2023 and acquisition will be completed after a stabilisation period of 12 months for leasing.