Ascendas India Trust to construct Indian warehouse for $42.1m

The warehouse will be leased to logistics firm Arshiya.

Ascendas India Trust (a-iTrust) has entered into a construction funding and forward purchase agreement with a subsidiary of logistics and supply management service provider Arshiya to construct the firm’s seventh warehouse for $42.1m.

Located at the Arshiya Free Trade Warehousing Zone at Panvel, the warehouse has a total leasable area of 325,503 sqft. It will be acquired by a-iTrust upon completion and leasing, which will then be leased to a subsidiary of Arshiya for six years under a master lease arrangement.

The deal builds upon a-iTrust’s acquisition of six operating warehouses at Panvel FTWZ, a 143-acre site with additional development potential of at least 2.8 million sqft. a-iTrust acquired the rights to extend construction funding and acquire future warehouses to be developed by the Vendor at Panvel FTWZ.

“We are seeing increased tenant demand since our initial acquisition of the six operating warehouses at Panvel FTWZ,” said Sanjeev Dasgupta, CEO of a-iTrust.