Ascendas India Trust to acquire aVance 6 IT SEZ building for Rs 506 crore

HYDERABAD: Ascendas India Trust (a-iTrust), a

property trust

set up by Singapore-based real estate player CapitaLand Ltd, is acquiring Phoenix Group’s aVance 6 IT SEZ building in HITEC City for a consideration of Rs 506 crore (SGD 92 million approx).


The property has a

total floor area

of about 6.4 lakh sq feet with over 98% of the space being leased to Amazon Development Center (India) Pvt Ltd.

The definitive agreement for the deal was inked by Singapore-based Ascendas Property Fund Trustee Pte Ltd, which is the trustee-manager of Ascendas India Trust, with Phoenix IT Infrastructure India Pvt Ltd.

Commenting on the proposed acquisition, Sanjeev Dasgupta, CEO, Ascendas Property Fund Trustee Pte Ltd, said, “The proposed acquisition provides a-iTrust an opportunity to scale up presence in HITEC City and will add Amazon as a tenant to its IT park portfolio.”

He pointed out that the improving connectivity and enhancement work being carried out at aVance project in HITEC City would benefit its 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, which is currently under construction,” he explained.

This is the fifth Phoenix Group IT SEZ building that will be acquired by a-iTrust, which acquired aVance 1 and 2, spread across a total area of nearly 4.28 lakh sq feet, in February 2012. It went on to acquire aVance 3, spread over nearly 6.83 lakh sq ft in July 2015, and followed this up with the 3.9 lakh sq ft aVance 4 in April 2017.

The a-iTrust, which had assets under management worth over SGD2.1 billion as at December 31, 2020, is one of the six real estate

investment trust

(

REITs

) owned and managed by diversified Singapore-based real estate player CapitaLand Ltd.

Its portfolio comprises seven IT business parks and one logistics park in India — the

International Tech Park

at Bangalore, International Tech Park Chennai and CyberVale in Chennai, International Tech Park Hyderabad, CyberPearl and aVance in Hyderabad, aVance in Pune and Arshiya warehouses near Mumbai.


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