BENGALURU: Singapore’s Ascendas India Trust (a-iTrust) on Tuesday said it has entered into a definitive agreement to acquire aVance 6, an IT special economic zone (SEZ) building in Hyderabad’s HITEC City.
a-iTrust is buying the commercial office asset of 639,495 sq ft from real estate firm Phoenix IT Infrastructure India Pvt Ltd. Around 98.3% of aVance 6 is leased to Amazon Development Center (India) Pvt Ltd.
The proposed acquisition will be the fifth building bought by a-iTrust from the Phoenix Group. It had previously acquired aVance 1 & 2, aVance 3, and aVance 4 in different transactions between February 2012 and April 2017. All the buildings are part of master developer Phoenix Group’s aVance Business Hub.
aVance 5 is currently under construction and is expected to be ready by the second half of 2021.
a-iTrust’s manager Ascendas Property Fund Trustee Pte. Ltd said it has agreed to fund an additional amount of around Rs170 crore for aVance 5, beyond the building’s purchase consideration, by way of non-convertible debentures and inter-corporate deposits.
“The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio. The improving connectivity and enhancement work being carried out at aVance, HITEC City, Hyderabad, would benefit our tenants in the future. We have already started seeing some leasing traction, with a large US-based MNC having executed a letter of intent to lease aVance 5,” said Sanjeev Dasgupta, chief executive of the Trustee Manager.
a-iTrust’s portfolio comprises seven IT business parks and one logistics park in the country, including International Tech Park, Bengaluru, International Tech Park and CyberVale in Chennai, International Tech Park Hyderabad, CyberPearl, and aVance in Hyderabad, aVance in Pune and Arshiya warehouses near Mumbai.