Despite the Covid-induced financial slowdown, Hyderabad continues to observe big-ticket real estate investments. The most recent in the sequence of such big deals is that of Ascendas Property Fund Trustee, Ascendas India Trust (a-iTrust) trustee-manager, entering into definitive agreements with Phoenix to acquire aVance 6 IT SEZ building at Hitech City for Rs 506 crore.
Acquisition of IT-Sez in Hyderabad
The agreements with Phoenix IT Infrastructure India shareholders were executed to possess an IT-SEZ building with a total floor area of nearly 6,39,495 sq.ft. for a gross valuation of approximately Rs 5.06 billion (SGD 92.03 million).
Over 98.3 percent of aVance 6 is leased to Amazon Development Center (India) Private Limited, a multinational corporation. The deal will be the fifth building acquired from the Phoenix Group by Ascendas India Trust (a-iTrust). A-iTrust purchased aVance 1 & 2, totaling 4,27,700 square feet, in February 2012.
A-iTrust acquired aVance 3, comprising 6,82,900 sq.ft. in July 2015 and a-iTrust acquired aVance 4, covering 3,90,000 sq ft, in April 2017. AVance 5 is currently being developed. The proposed acquisition gives a-iTrust an opportunity to extend their presence in HI-TEC City and add Amazon to the portfolio of IT parks as a tenant.
As of 31 December 2020, the assets under control of a-iTrust stood at SGD 2.1 billion. The a-iTrust's portfolio includes Seven IT business parks and one logistics park in India.
Its key objective is to own income-producing real estate used in India primarily as a business space. The a-iTrust may also develop and purchase property or unfinished developments mainly to be used as a business space, with the purpose of maintaining the properties upon completion.
By: Shailaja K