Ascendas India Trust to buy industrial facility in Chennai for 2.11b rupees

ASCENDAS India Trust (a-iTrust) announced on Friday the proposed acquisition of an industrial facility in Chennai for 2.11 billion rupees (S$38.3 million) via a forward purchase agreement.

Estimated to be completed by the middle of this year, the manager said the proposed acquisition is expected to add 0.04 Singapore cent to the FY2020 distribution per unit.

a-iTrust will also be partially funding the development of the facility amounting to 1.4 billion rupees via a debenture subscription agreement with the site's developer, Chengalpattu Logistics Parks.

Following the project's completion and the fulfilment of other key conditions, a-iTrust will acquire the site by purchasing 100 per cent of the shares of the developer.

Further, the trust has the option to provide additional funding to develop industrial facilities of approximately 0.37 million square feet (sq ft), subject to leasing milestones and other conditions being met, said its manager in a press statement.

The industrial site, spanning 0.42 million sq ft, has been fully pre-leased to Taiwanese contract electronics manufacturer Pegatron Technology India.

Sanjeev Dasgupta, chief executive officer of the trustee-manager, said: "The proposed acquisition will add exposure to the industrial asset class and diversify our portfolio."

The proposed acquisition will bring a-iTrust's portfolio to approximately 23.2 million sq ft, an increase of 1.9 per cent.

Units of a-iTrust closed at S$1.54 on Friday, down four cents or 2.53 per cent.