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ASCENDAS Property Fund Trustee, the trustee-manager of Ascendas India Trust (a-iTrust), has agreed to buy BlueRidge Phase II in Pune.
The purchase price, which takes into account the rental, rental escalation and leasing level of BlueRidge Phase II as at the time of sale, is not expected to exceed 6,404.6 million rupees (S$133 million).
BlueRidge Phase II is an IT special economic zone in Pune, India, that is being constructed. It will comprise three buildings with about 1.5 million square feet of super built-up area. Construction is expected to be completed by the second half of 2015.
"The acquisition would help a-iTrust to scale up operations to 9.0 million sq ft. It would also mark a-iTrust's entry into Pune, an important market for its existing and potential clients. We expect the transaction to enhance earnings for unitholders," Sanjeev Dasgupta, chief executive officer of the trustee-manager, said.
Under the agreement, a-iTrust will first subscribe for non-convertible debentures (NCDs) amounting to 2,600 million rupees (S$54 million) issued by the co-developer of BlueRidge Phase II. The timing of the NCD subscription is tied to BlueRidge Phase II's construction funding requirements.
On Dec 31, 2016, a-iTrust will complete the acquisition of BlueRidge Phase II by buying 100 per cent of the shares in the co-developer if a minimum leasing threshold is met. If not, a-iTrust will have the right to call for repayment of the NCDs.