Ascendas Property Fund Trustee Pte Ltd, the trustee manager of Ascendas India Trust (a-iTrust), on Monday said it has entered into a forward purchase agreement with Gardencity Realty Private Limited to acquire two buildings in an IT Park in Bengaluru.
The two buildings, located at Hebbal in Bengaluru, have a total net leasable area of up to 1.65 million square feet. "The total purchase consideration for the transaction would depend on certain factors, including final rentals achieved, and is currently estimated to be Rs 1,441 crore," a-iTrust said in a release.
The project comprises three buildings spread across two land parcels, with an aggregate net leasable area of approximately 2.26 million square feet.
"a-iTrust proposes to fund the development of the project and subsequently acquire a net leasable area of up to 1.65 million square feet in two buildings spread across two land parcels," the release said.
Initially, and during the construction period, a-iTrust's investment in the construction of the project will be through debt. "The forward purchase acquisition will take place after completion of the construction and is subject to the receipt of the occupancy certificate for the project and other key conditions."
a-iTrust shall provide funding towards development of the project of approximately Rs 828 crore. Upon the project obtaining the occupancy certificate and fulfilment of other key conditions, a-iTrust shall purchase 100 per cent of the shares of the two entities developing the project.
"The proposed acquisition will provide an opportunity to establish our presence in Hebbal, one of Bangalore's upcoming IT/ITES micro-markets, which is currently witnessing stable demand and rent. The improving connectivity and infrastructure near the project would benefit our tenants in the future," Ascendas Property Fund Trustee Pte Ltd CEO Sanjeev Dasgupta said.