Ascendas India Trust has, through its wholly-owned subsidiaries Ascendas Property Fund (India) and Ascendas Property Fund, have entered into a securities purchase agreement and share purchase agreement to acquire aVance 6 at HITEC City, Hyderabad, India.
The agreements were entered into with the shareholders of Phoenix IT Infrastructure India Private Limited to acquire an IT SEZ building for a total consideration of 5.06 billion rupees ($92.03 million).
The building comes with a total floor area of 639,495 sqft.
About 98.3% of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India).
The proposed acquisition will be the fifth building acquired by the trust from the Phoenix Group.
In February 2012, Ascendas India Trust, acquired aVance 1 & 2. The trust then acquired aVance 3 and 4 in July 2015 and April 2017 respectively.
aVance 5 is currently under construction.
“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,” says Sanjeev Dasgupta, CEO of the trustee-manager.
“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,” he adds.
Units in Ascendas India Trust closed 4 cents higher or 2.7% up at $1.54 on Feb 15.