I n v e s t m e n t m a n a g e m e n t
Building
Floor Area
(million sq ft)
Status
a-iTrust Properties
aVance
aVance
Total
0.20
0.23
0.43
Acquired
Acquired
Right to Acquire
aVance
0.68
Completed
aVance
0.39
Under construction
aVance
0.85
Not built
Total
1.92
Right of First Refusal to
Acquire
aVance
aVance
aVance
aVance
0.23
0.30
0.20
0.43
Completed
Completed
Completed
Under construction
Total
1.16
1
2
3
4
5
6
7
8
9
1
Amount translated into Singapore dollars using spot exchange rate at the time of investment.
case Study: aVance Business Hub Pipeline
Our agreement with Phoenix Infocity Pvt Ltd
(“Vendor”) gives us the right to acquire five buildings
individually as and when they are completed. The
buildings are part of an IT Park located in Hyderabad
named aVance Business Hub.
In February 2012, we acquired aVance 1 and 2 for ₹
₹
1,765 million (S$45 million)
1
from the Vendor.
These two buildings have a total floor area of 0.43
million sq ft, and were fully occupied at the point of
acquisition. In June 2013, the Vendor completed the
construction of a 0.68 million sq ft building named
aVance 3. As part of our agreement, we invested ₹
₹
1,750 million (S$40 million)
1
in March 2013 and ₹
₹
420 million (S$8.6 million)
1
in January 2014 after
the Vendor met pre-specified leasing milestones for
aVance 3. As at 31 March 2015, the building was
86% committed and we intend to buy over the
building in the near term. Besides aVance 3,
we have rights to acquire two other buildings to be
constructed by the Vendor totaling 1.24 million sq ft.
In addition to the agreement with the Vendor,
a-iTrust was granted a ROFR to acquire four other
buildings within aVance Business Hub. These four
buildings totalling 1.16 million sq ft are owned by
parties not related to the Vendor.
To ensure that new buildings built by the Vendor
meet our requirements, a-iTrust and the Vendor
has set up a project committee to oversee the
design and development of new buildings. The
committee is also responsible for securing the
desired tenant profile by prequalifying the tenant
list, setting the rental range, and specifying other
material terms of the lease contracts. Lastly, a-iTrust
has the rights (through its appointed property
manager) to manage buildings not owned by it to
maintain the level of standard that our customers
have come to expect across the entire IT Park.
ASCENDAS india trust ANNUAL REPORT 2014/15
