Ascendas India Trust buys Arshiya's warehouse at Khurja in UP for Rs 95 cr

Ascendas India Trust has acquired a warehouse, comprising 2 lakh sq ft area, from Arshiya at Khurja in Uttar Pradesh for around Rs 95 crore as part of its expansion plan.

Ascendas Property Fund Trustee Pte Ltd, the trustee-manager of Ascendas India Trust (a-iTrust), announced signing of a definitive agreement for acquisition of the income-producing warehouse with a total floor area of about 0.2 million sq ft from Arshiya Northern FTWZ Ltd.

The warehouse, which is part of a Free Trade Warehousing Zone (FTWZ) spread over about 127 acres of freehold land, has attracted multinational customers, including ZTE, Corning, CFM Aircraft Engines, among others, a company statement said.

Within the FTWZ facility, Arshiya has two existing warehouses and substantial land bank to build additional warehouses. The future development potential of the site is estimated at about 3.6 million square feet.

"The logistics sector caters to domestic consumption and industrial demand and provides diversification to our business parks portfolio," Ascendas Property Fund Trustee Pte CEO Sanjeev Dasgupta said.

"The proposed acquisition also enables a-iTrust to grow its warehousing footprint in North India. We would benefit from key infrastructure projects like Jewar International airport and Dedicated Freight Corridor coming up in the vicinity," he added.

a-iTrust has entered into agreement with Arshiya with an option to acquire the existing warehouses and fund the construction of future warehouses within the FTWZ, and to acquire these warehouses when completed.

The purchase consideration for the warehouse comprises of an upfront payment of about Rs 22.99 crore and an additional deferred consideration of up to Rs 72.16 crore to be paid over the next four years.

With this acquisition, a-iTrust's portfolio size will increase from about 22.6 million sq ft to about 22.8 million sq ft.