Singapore-listed Ascendas India Trust agreed to acquire an Amazon.com Inc.-leased building and a yet-to-be-completed property in Hyderabad, India, from Phoenix Infocity Pvt. Ltd. for an anticipated consideration of up to 13.50 billion Indian rupees.
Ascendas India will collectively buy the 1.16 million-square-foot aVance 5 property and the 640,000-square-foot aVance 6 building, subject to the satisfactory completion of the buyer's due diligence on the properties, among other conditions. AVance 5 is expected to be ready within the second half of 2019, while aVance 6 is completed and is 98.0%-occupied by the American online retailing company. Both buildings are part of the 25.68-acre aVance Business Hub, which is an approved IT special economic zone.
To date, the office-focused real estate investment trust owns four of the 10 buildings comprising the aVance Business Hub. The addition of aVance 5 and 6 will increase the trust's portfolio by 13% to 16.0 million square feet from 14.2 million square feet, according to a news release.
Separately, the REIT also agreed to buy five of the seven buildings that Phoenix Infocity is planning to develop as part of the 14.4-acre aVance Business Hub 2 project. Ascendas India said it will purchase the buildings individually once they are completed in over five to nine years, subject to required leasing levels being met, among other conditions.
As of May 18, US$1 was equivalent to 68.02 Indian rupees.