Hyderabad, Feb 24 (IANS) Singapore-based Ascendas Property Fund Trustee Private Limited, the trustee-manager of Ascendas India Trust (a-iTrust), Thursday announced that it has reached an agreement with Phoenix Infocity Private Ltd to acquire its five buildings in Hitec City Special Economic Zone here.
Two of the buildings are completed and 100 percent occupied, while the other three buildings are expected to be completed over the next four to five years, Ascendas said in a statement.
a-iTrust will immediately acquire the two completed buildings, with a total super built-up area (SBA) of 0.4 million sq ft, for Rs.1,739 million ($50.4 million).
The remaining three buildings, with a total SBA of 1.8 million sq ft, will be acquired as and when each building is completed and leased. The pricing of the three buildings will be based on the net property income achieved at the time of acquisition, and is presently estimated at Rs.6,808 million ($197.4 million).
This transaction is expected to be accretive to distribution per unit (DPU), with immediate accretion from the two completed buildings, and further accretion as the trust acquires the other three buildings.
With this acquisition, a-iTrust’s presence in Hyderabad will grow from the current 1.7 million sq ft owned to 3.9 million sq ft.
The acquisition will strengthen a-i Trust’s position to capture the opportunities provided by the rapid growth of India’s IT industry, the statement said.