Ascendas India Trust To Acquire IT-SEZ Building From Phoenix Group For Rs 506 crore
Ascendas India Trust (a-iTrust) said on February 16, Tuesday, that it will acquire an IT-SEZ building in Hyderabad from Phoenix Group for a sum of Rs 506 crore. According to an official statement, the Ascendas Property Fund Trustee, in its capacity as trustee-manager of Ascendas India Trust, entered into definitive agreements for the proposed acquisition of aVance 6 at HITEC City in Hyderabad. The agreements were executed with the shareholders of the Phoenix IT Infrastructure India Private Limited to acquire an IT SEZ building in Hyderabad with a total floor area of 639,495 square feet approximately.
Around 98.3 per cent of aVance 6 is leased to Amazon Development Center (India) Private Limited, the statement added. The proposed acquisition will be the fifth building acquired by Ascendas India Trust from the Phoenix Group. In February 2012, Ascendas India Trust acquired aVance 1 and 2, totaling 427,700 square feet. In July 2015, it acquired the aVance 3, totaling 682,900 square feet, and in April 2017, the company acquired aVance 4, totaling 390,000 square feet. aVance 5 is currently under construction.
“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 Officer of the Trustee-Manager.
