Ascendas India Trust announces proposed acquisition of first industrial property

Singapore-based Ascendas Property Fund Trustee Pte. Limited., in its capacity as trustee-manager of Ascendas India Trust (a-iTrust), has announced that it has entered into definitive agreements for the proposed acquisition of Casa Grande-Phase 1, a 0.42 million square feet industrial facility at Mahindra World City, Chennai.

This is pursuant to the forward purchase arrangement with the shareholders of Chengalpattu Logistics Parks Private Limited (CLPPL), and the shareholders of CLLPL, (vendors), as announced on March 5, 2021. The definitive agreements for the acquisition have been executed with the vendors to acquire all of the issued share capital in CLPPL, which owns Casa Grande-Phase 1, for consideration of ₹2,120 million or S$38.6 million (based on the exchange rate of S$1 : INR55.0). The facility is fully leased to a leading international electronics contract manufacturer.

Casa Grande-Phase 1 is the first of the industrial facilities covered in the March 2021 forward purchase agreement with the vendors.

a-iTrust has the option to fund the development of Casa Grande-Phase 2, comprising two industrial facilities with an aggregate net leasable area of approximately 0.31 million square feet.

Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager said, "The acquisition of Casa Grande-Phase 1 marks a-iTrust's first investment in the industrial segment. This is a high-tech asset focused on the assembly of cellphone products and components. The property is located at Mahindra World City, a leading industrial township and an established industrial micro-market in Chennai. This acquisition validates our diversification strategy in the industrial and logistics segments."