Ascendas Property Fund Trustee, the trustee-manager of Singapore listed Ascendas India Trust (a-iTrust), on Tuesday said that it is buying an information technology SEZ building in Hitech City of Hyderabad for Rs 500 crore from Phoenix IT Infrastructure.
The building, called aVance 6, has an area of 639,495 square feet, of which about 98 per cent has been leased to a multinational corporation, Amazon Development Center (India) Private Limited.
The proposed acquisition will be the fifth building acquired by a-iTrust from the Phoenix Group. In February 2012, a-iTrust acquired aVance 1 & 2, totaling 427,700 square feet. In July 2015, a-iTrust acquired aVance 3 (682,900 sq ft and in April 2017, it bought aVance 4 (390,000 square ft). aVance 5 is currently under construction.
Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio. 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.”