BENGALURU: Singapore’s Ascendas Property Fund Trustee Pte. Ltd, the trustee-manager of Ascendas India Trust (a-iTrust) on Monday said it has entered into a forward purchase agreement with Gardencity Realty Pvt. Ltd to acquire two buildings in an IT Park in Bengaluru.
The total acquisition value, depending on certain factors including final rentals achieved, is currently estimated to be ₹1,441 crore. Ascendas India Trust will also provide funding for the development of the project as part of the forward purchase arrangement.
The project comprises three buildings spread across two land parcels, with net leasable area of 2.26 million sq. ft. The trust plans to fund the development of the project and subsequently acquire leasable area of up to 1.65 million sq. ft in two buildings spread across two land parcels.
Initially, and during the construction period, a-iTrust’s investment in the construction of the project will be through debt. The forward purchase acquisition will take place after completion of the construction and the project receives the occupancy certificate.
a-iTrust shall provide funding of around ₹828 crore towards project development. It will later buy 100% of the shares of the two entities developing the project. As a result of the acquisition of these two IT buildings, a-iTrust’s portfolio size (including pipeline projects) will increase by 7.2% from approximately 23.2 million square feet4 to approximately 24.9 million square feet.
“The proposed acquisition will provide an opportunity to establish our presence in Hebbal, one of Bangalore’s upcoming IT/ITES micro-markets, which is currently witnessing stable demand and rent. The improving connectivity and infrastructure near the Project would benefit our tenants in the future,” said Sanjeev Dasgupta, CEO of the trustee-manager.