Ascendas India Trust enters acquisition deal for first industrial facility

The company will also provide funding for the development of the project.

Singapore-headquartered Ascendas India Trust (a-iTrust) has entered into a forward purchase agreement with Casa Grande Group to acquire its first industrial facility located at Mahindra World City, Chennai, according to its trustee manager Ascendas Property Fund Trustee Pte. Ltd.

The project is an industrial facility with a net leasable area of approximately 0.42 million square feet. It is fully pre-leased to Pegatron Technology India Private Limited, a wholly owned subsidiary of Pegatron Corporation. Pegatron Corporation is a listed Taiwanese contract electronics manufacturer.

a-iTrust proposes to fund the balance development of the project and subsequently acquire the asset.

Pursuant to the deal structure, a-iTrust shall provide funding towards the development of the project. Upon completion of the Project and fulfilment of other key conditions, a-iTrust shall purchase 100% of the shares.

a-iTrus also has the option to provide additional funding to develop industrial facilities of approximately 0.37 million square feet, subject to leasing milestones and other conditions being met.

“The proposed acquisition will add exposure to the industrial asset class and diversify our portfolio. The industrial segment has been resilient through the pandemic. The Project also offers an opportunity to have a leading manufacturer like Pegatron within our tenant portfolio and support their expansion in India,” said Sanjeev Dasgupta, CEO of the Trustee-Manager.

The acquisition of the industrial facility will increase a-iTrust’s portfolio by 1.9% from approximately 22.8 million square feet to approximately 23.2 million square feet.