Ascendas property fund to raise $100m through private placement

This will fund a business park development in Bangalore.

Ascendas India Trust (a-iTrust) will sell at least 66,313,000 new units in a-iTrust through a private placement, with an issue price set between $1.465 and $1.508 per new unit, to raise gross proceeds of at least $100m, announced the company.

Its trustee-manager will use the gross proceeds of approximately $100m to finance initial developments of a business park in Bangalore. Approximately $98m will be allotted for the financing of the initial upfront funding of Phase 1 of the project worth $144m (INR7.5b). About $2m will be used to pay the estimated fees and expenses.

a-iTrust has entered into a non-binding agreement with a vendor for a potential investment by way of forward purchase of a business park in Bangalore.

Phase 1 of the project with an estimated total net leasable area of 1.7 million sqft will be constructed and acquired within four years from the date of first disbursement. The development of the business park is estimated to be carried out across several phases over approximately 10 years.