Ascendas India Trust entered into an agreement to purchase two buildings in the Aurum Platz IT Park mixed-use development in the township of Navi in Mumbai for a combined sum of 14.31 Indian rupees.
The deal for the 1.4 million-square-foot properties will be carried out through the trust's subscription of debentures amounting to 5.01 billion rupees issued by the co-developer of the buildings, which will use the sum to fund the construction of the assets. The transaction will close with Ascendas India's acquisition of the co-developer for 9.30 billion rupees at a later date.
The two buildings to be acquired, which form part of the 2.9 million-square-foot, four-building park, span 600,000 square feet and 800,000 square feet of space, and are expected to complete by the second half of 2018 and and early 2020, respectively. The Singapore-headquartered real estate operator and manager also said it has the right of first refusal on the remaining two buildings in the park, which collectively comprise an area of about 1.5 million square feet.
Following the closing of the transaction, the trust's portfolio will increase by 11% to 14.2 million square feet from 12.8 million square feet.
As of May 11, US$1 was equivalent to 67.45 Indian rupees.
