Ascendas India Trust to acquire warehouse project for Rs 70 cr

Ascendas India Trust (a-iTrust) will invest Rs 70 crore to acquire an additional warehouse project from Arshiya Ltd near Mumbai.

The company said it has "entered into a construction funding and forward purchase agreement with Arshiya Ltd to develop an additional warehouse with a total leasable area of 3,25,503 sq ft in the Arshiya Free Trade Warehousing Zone, Panvel near Mumbai.

In February 2018, Ascendas India Trust completed the acquisition of six operating warehouses located at the Arshiya Free Trade Warehousing Zone.

This portfolio consists of six operating warehouses with 0.83 million sq ft and have close to full occupancy. The site is spread over 143 acres of land which has an additional estimated future development potential of 2.8 million sq ft.

"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 statement said.

The total construction funding is expected around Rs 70 crore.

Ascendas Property Fund Trustee is the trustee manager of a-iTrust.

"The proposed construction funding of the new warehouse, upon completion, will further enhance a-iTrust's position 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," Sanjeev Dasgupta, CEO of the trustee-manager said.

a-iTrust was listed on the Singapore Exchange Securities Trading Limited in August 2007 as the first Indian property trust in Asia. Its objective is to own income-producing real estate used primarily as business space in India.

The company may also develop and acquire land or uncompleted developments primarily to be used as business space with the objective of holding the properties upon completion. As at 31 March 2019, a-iTrust's asset under management stands at 1.9 billion Singapore dollar. Its portfolio comprises seven IT business parks and six modern warehouses in India.

a-iTrust is managed by Ascendas Property Fund Trustee Pte Ltd the trustee-manager is an indirect wholly owned subsidiary of Singapore-listed CapitaLand Ltd one of Asia's largest diversified real estate groups.