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Investment management
Development strategy
Since listing, a-iTrust has developed 3.55 million sq ft of
commercial space from its land bank. In January 2014,
we offcially commissioned Aviator, the latest addition to
our portfolio. Aviator, a 0.60 million sq ft multi-tenanted IT
building in Bangalore, is fully committed and is expected
to boost the income of a-iTrust in FY14/15 as we
progressively hand over the space to customers.
Voyager is located within International Tech Park Bangalore’s special economic zone. Construction of the 0.54 million sq ft
building commenced in August 2009, coinciding with the global fnancial crisis. Despite challenging market conditions,
Voyager achieved leasing commitment level of 68%
1
when it was completed in June 2011. Our decision not to lower
asking rents in the lead up to Voyager’s completion paid off as offce demand rebounded soon after. By the end of 2011,
total absorption of offce space in Bangalore reached a high of 10.9 million sq ft
2
as investor confdence returned.
Our investment in Voyager has reaped attractive returns for unitholders. From June 2011 to March 2014, we recorded
total development gains of
ࡩ
1.5 billion for this building. In addition, Voyager’s development yield
3
of 18.8% is signifcantly
higher than our latest average portfolio capitalisation rate of 10.5%.
Amount invested
:
ࡩ
1.50 billion
Valuation as at 31 March 2014 :
ࡩ
2.98 billion
Developmental gains:
ࡩ
1.48 billion
Development yield
:
18.8%
Total property income
(
ࡩ
‘mil)
Net property income
(
ࡩ
‘mil)
Occupancy (%)
230
117
39%
405
206
81%
502
282
100%
11/12
FY
12/13 13/14
11/12
FY
12/13 13/14
11/12
FY
12/13 13/14
Voyager
CASE STUDY
"Our investment strategy is to generate
superior portfolio returns for unitholders
by investing in business space in key
Indian cities. "
Sanjeev Dasgupta
CEO-designate
1
Based on leases that have been signed. Physical occupancy of Voyager was 39% as at March 2012.
2
Source: CBRE South Asia Pvt. Ltd.
3
The development yield is calculated by dividing FY13/14 net property income by the amount invested.
4
Comprises land (as at FY08/09 valuation) and construction cost.
Post the completion of Aviator, we have 2.86 million sq ft
of potential built-up area within International Tech Park
Bangalore. This sizeable land bank will be developed in
phases to meet market demand.