Ascendas India Trust invests in 2 industrial assets in Chennai

Tay Peck Gek

Published Thu, Jul 14, 2022 · 10:28 PM

ASCENDAS India Trust : CY6U 0% has entered into a forward purchase agreement for 2 industrial properties in Mahindra World City in Chennai on the eastern coast of India.

The properties, with net leasable area of 310,000 square feet in total, are expected to be completed by the second half of 2023; the acquisition will be completed after a stabilisation period of 12 months for leasing, the trustee-manager of Ascendas India Trust said in a bourse filing on Thursday (Jul 14).

Under the agreement, the trust will furnish funding for the development of the properties, known as Casa Grande – Phase 2. The trust will acquire all the issued share capital of Chengalpattu Warehousing Parks, the entity developing the Phase 2 project, when the development is completed.

The trustee-manager noted that the acquisition could improve the earnings and distributions for unitholders, as the pro forma impact of the proposed acquisition on FY 2021 distribution per unit is expected to be an accretion of 0.01 Singapore cent.

The portfolio size of Ascendas India Trust will increase by 1.2 per cent, from about 25 million square feet to about 25.3 million square feet, as a result of the purchase.

Last year, Ascendas India Trust acquired Casa Grande – Phase 1, a 420,000 square feet fully-leased industrial facility. The deal was recently completed.