Ascendas India Trust to acquire Phase 2 warehouse in India
It signed definitive agreements for the proposed acquisition.
Ascendas Property Fund Trustee Pte. Limited, the Trustee Manager of Ascendas India Trust (a-iTrust), is seeking for the acquisition of the Phase 2 warehouse Arshiya Free Trade Warehousing Zone (FTWZ) in India to expand its presence in the logistics sector.
In its company announcement, a-iTrust bared that it entered definitive agreements for the proposed acquisition of all issued share capital of Anomalous Infra Private Limited, which owns the 330,000 square feet (sq ft) warehouse at the Arshiya Free Trade Warehousing Zone, Panvel, Navi Mumbai.
The recently-constructed operational warehouse is being acquired from the Arshiya Group as part of the forward purchase agreement conducted in July 2019. A-iTrust had also acquired six operating warehouses from the Arshiya Group with a total leasable area of 830,000 sq ft in February 2018.
Similar to the six warehouses, the seventh warehouse will also be leased and operated by a subsidiary of the Arshiya Group for a period of six years. The gross acquisition consideration for this seventh warehouse is over $38.7m (INR$2.15b).
It is composed of an upfront payment of $34.9m (INR$1.94b) and an additional deferred consideration of up to $3.8m (INR$0.21b) to be paid over the next four years, upon achievement of certain performance milestones.
Trustee-Manager CEO Sanjeev Dasgupta said the acquisition will allow a-iTrust to “further expand its presence in the logistics sector.”
“Given the unique benefits offered by the FTWZ logistics segment, we are seeing growing demand in this space and this acquisition puts us in a good position to capitalise on this growth,” Dasgupta said.
$1 = INR$56.32