The forward purchase acquisition will take place after the construction is complete
Ascendas Property Fund Trustee Private Limited, the Trustee-Manager of Ascendas India Trust or ‘a-iTrust’, announced on March 29, 2021, that it entered into a forward purchase agreement with Gradencity Realty Private Limited for acquiring two buildings at the IT Park of Bengaluru. According to a statement shared by the company, the current estimated deal value for the project is Rs 1,441 crore, and the total net leasable area is up to 1.65 million square feet located at Hebbal in Bangalore. (Also Read: Ascendas India Trust To Acquire Industrial Facility At Mahindra World City In Chennai )
According to the statement shared by the firm, the project consists of three buildings spread across two land parcels. The aggregate net leasable area is approximately 2.26 million square feet. As part of the forward purchase agreement, Ascendas India Trust will also provide the funding for the development of the project. Subsequently, it plans to acquire the net leasable area of up to 1.65 million square feet in two buildings of the IT park that is spread across two land parcels. In the initial phase, the Ascendas India Trust’s investment in the project construction will be through debt. The initial phase is the duration of the construction period.
The forward purchase acquisition will take place after the construction is complete and on the fulfillment of other key conditions. Further, the property trust will provide funding of Rs 828 crore towards the development of the project, and subsequently, it will buy 1000 per cent shares of the two entities developing the project.
In August 2007, Ascendas India Trust was listed on the Singapore Exchange Securities Trading Limited as the first Indian property trust in Asia. Ascendas Property Fund Trustee Private Limited is a wholly-owned subsidiary of the Singapore-listed CapitaLand Limited. CapitaLand is one of Asia’s largest diversified real estate groups.