Ascendas India Trust invests in Hyderabad IT building

ASCENDAS Property Fund Trustee Pte Ltd has acquired an information technology building in Hyderabad, India, for a consideration valued currently at about 1.8 billion rupees (S$36.4 million).

In a filing to the Singapore Exchange on Thursday, it said that, in its capacity as trustee-manager for Ascendas India Trust (a-iTrust), it has invested in the IT building with a total floor area of 390,000 square feet.

This floor area is defined as the sum of the floor area enclosed within the walls, the area occupied by the walls, and the common areas such as the lobbies, lift shafts, toilets and staircases of that property, and in respect of which rent is payable.

The building is termed as a-iTrust's fourth aVance Business Hub property (aVance 4). It is being constructed by Phoenix Infocity.

For the acquisition of aVance 4, a-iTrust is providing a construction loan to Phoenix Infocity through the subscription of fully compulsorily convertible debentures (FCCD).

These new, interest-bearing FCCDs, issued by Phoenix Infocity's investment vehicle, are estimated to be worth 1.1 billion rupees. A-iTrust may increase the loan as further leasing conditions are met, said the release.

Upon the building's completion, and after satisfying all preceding conditions precedent, a-iTrust will complete the acquisition by purchasing 100 per cent equity stake in Phoenix Infocity's investment vehicle.

The total purchase consideration for aVance 4 would depend on the final rentals achieved. It is currently estimated at 1.8 billion rupees.

As at July 27, the leasing commitment level at aVance 4 was 46.3 per cent, and construction of the building is expected to be completed by March 31 next year, said Ascendas.