Acquisition of Industrial Project by Ascendas Property Fund Trustee
Ascendas Property Fund Trustee, the trust manager of Ascendas India Trust (a-iTrust), has entered into a forward purchase agreement with Casa Grande Group. As per this agreement, they will acquire Casa Grande Group’s inaugural industrial plant situated in Mahindra World City, Chennai. The company revealed this deal in a media release.
Details of the Project
The project is an industrial plant with a net leasable area of approximately 0.42 million square feet. It is pre-leased to Pegatron Technology India, a wholly-owned subsidiary of Pegatron Corporation, featuring a 7-year lock-in period and annual rent escalations.
Financial Arrangements
Under the Forward Purchase Agreement, a-iTrust will also provide funds for the development of the project. The funding will be subject to certain conditions, including the acquisition of 100% of the shares of the entity developing the project.
Additionally, a-iTrust has the option to offer more funding for the development of industrial amenities. These amenities will span approximately 0.37 million square feet, conditional on lease agreements and other requirements being met. Construction is expected to be completed in mid-2021.
Impact of the Acquisition
The preliminary impact of the proposed acquisition for the financial year 2020 per unit distribution (DPU) is estimated to be 0.04 Singapore cents. The acquisition of this industrial property will expand a-iTrust’s committed portfolio by 1.8%, from approximately 22.8 million square feet to approximately 23.3 million square feet.
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