As­cen­das to ac­quire two com­mer­cial build­ings for ₹1,400 crore in Hy­der­abad

HT Estates - - FRONT PAGE - Bidya Sa­pam bidya.s@htlive.com

MUMBAI: As­cen­das In­dia Trust (a-iTrust), which is part of Singapore’s As­cen­das Sing­bridge, will ac­quire two up­com­ing com­mer­cial of­fice build­ings at aVance Busi­ness hub in Hy­der­abad for up to ₹1,400 crore.

As­cen­das Prop­erty Fund Trustee Pte. Ltd, the trustee­m­an­ager of a-iTrust has en­tered into a for­ward pur­chase agree­ment with Phoenix Ven­tures Pvt. Ltd to ac­quire twobuild­ings, A1 and A2, in aVance Busi­ness Hub 2, lo­cated in HITEC City. The com­bined leasable area of the two build­ings stand at 1.85 mil­lion sq. ft, the com­pany said in a state­ment.

a-iTrust, along with its af­fil­i­ates, will pro­vide con­struc­tion fund­ing by sub­scrib­ing to deben­tures is­sued by Phoenix Ven­tures and its co-de­vel­oper en­ti­ties amount­ing to ₹795.8 crore.

“The com­pany will com­plete the ac­qui­si­tion by pur­chas­ing 100% shares in the co-de­vel­oper en­ti­ties, once the re­quired leas­ing cri­te­ria is met in the build­ings. The pur­chase price will be de­ter­mined in ac­cor­dance with a pre-agreed for­mula, which takes into ac­count key fac­tors such as rent, oc­cu­pancy and cap­i­tal­i­sa­tion rates,” a-iTrust said.

Along with con­struc­tion fi­nance, the to­tal pur­chase amount is not ex­pected to ex­ceed ₹1,400 crore.

In May, a-iTrust had en­tered into a “master agree­ment” with Phoenix Ven­tures and its co-devel­op­ers to ac­quire five out of the seven build­ings at the 14.4-acre aVance Busi­ness Hub.

“The pro­posed ac­qui­si­tion of aVance A1 and A2 will al­low us to fur­ther strengthen our pres­ence in Hy­der­abad, which is cur­rently wit­ness­ing ro­bust rental growth aris­ing from healthy de­mand from global IT com­pa­nies,”said San­jeev Das­gupta, chief ex­ec­u­tive of­fi­cer, Trustee­M­an­ager.

While aVance A1 has a leasable area of ap­prox­i­mately 0.86 mil­lion sq. ft, aVance A2’s leasable area is about 0.99 mil­lion sq. ft. “Both build­ings will be ac­quired in­di­vid­u­ally when com­pleted, sub­ject to re­quired leas­ing lev­els be­ing met, among other con­di­tions,” the com­pany said.

a-iTrust has al­ready com­mit­ted ₹1,350 crore to ac­quire two other com­mer­cial build­ings aVance 5 and 6 with a com­bined leasable area of 1.8 mil­lion sq ft. The com­pany has been on an ac­qui­si­tion spree over the last few months.

On 15 May, the com­pany also en­tered into a for­ward pur­chase agree­ment with Navi Mum­baibased builder Au­rum Ven­tures to buy the two as­sets for ₹930 crore. Lo­cated at Navi Mumbai, the two up­com­ing of­fice build­ings are spread over 1.4 mil­lion sq. ft.

MINT/FILE

As­cen­das to ac­quire prop­erty in HITEC City in Hy­der­bad

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