In Hyderabad, aVance Business Hub provides a pipeline of assets
that may be acquired by us. We have already invested about
S$48.6 million (₹
2.2 billion)
4
through construction financing loans
in aVance 3, and we expect to acquire the building in the near
term. Besides the third building, aVance Business Hub provides
us additional access to approximately 2.4 million sq ft
of acquisition targets.
We continue to actively seek out suitable acquisition
opportunities in the market. The recent turnaround in India’s
economy has prompted global property funds to look at India’s
commercial real estate sector seriously. Despite the heightened
competition, we will remain financially disciplined when making
new acquisitions.
With our extensive land bank and a large pipeline of acquisition
targets, a-iTrust is well positioned to grow its portfolio in the
coming years.
On another note, you may have heard about the pending
merger between a-iTrust’s sponsor, Ascendas Pte. Ltd. and
Singbridge Group. We wish to inform you that it will be
business as usual for the Trust.
On behalf of the Board, we would like to thank Mr Jonathan Yap,
who ably led a-iTrust since listing and has relinquished his Board
position. We express our appreciation to him for building a strong
platform for continued growth.
On behalf of the Board and management, we would also like
to express our heartfelt appreciation to you, our shareholders,
for your continued support and confidence in a-iTrust. We
also want to thank our directors and staff for their unstinting
commitment and dedication.
Philip Yeo
Sanjeev Dasgupta
Chairman
CEO
Q & A w i t h C E O
1. What is your outlook on the Indian economy?
The Indian GDP is forecast to grow at 7.5% in 2015 and 2016. In comparison,
the Indian economy grew at 7.2% in 2014
3
. Lower inflation, a stable Indian Rupee
and enhanced regulatory clarity are some of the key factors driving the stronger
economic growth going forward. On the IT and Business Process Management
sectors, revenue growth is expected to remain robust at 13-15% in FY15/16
5
,
as India continues to maintain its leadership position as a global IT offshoring
and outsourcing hub.
2. How does a-iTrust differentiate its properties from competitors?
We believe in going beyond providing simple bricks and mortar offices to
our tenants through our asset management initiatives. Our new buildings
offer large and efficient floor plates built to international specifications,
to meet the needs of our discerning tenants. We apply the latest green
technologies and practices to reduce the environmental impact from our
construction activities and daily operations. We help our tenants reduce their
operating costs by lowering their staff turnover rate. We keep our tenants’
employees engaged and happy by organising regular social activities in our
IT parks throughout the year. We also provide extensive amenities, such as
banking facilities, food courts and retail offerings in our IT parks, so that
the employees can enjoy an international business lifestyle. These initiatives
pay off, as most of our tenants who have been with us, tend to stay with
us. In the last three years, our average tenant retention rate was 86%.
3. How does the new Indian REIT regulation affect a-iTrust?
In the near term, we do not foresee any significant impact on a-iTrust.
The new Indian REIT regulations represent an important step towards
making Indian REITs a reality. As Indian REITs get listed, we will closely
monitor the situation to evaluate our strategic alternatives. We will carefully
consider the repercussions on current unitholders, how it affects our overall
cost of capital, and whether it enhances our unitholders’ returns.
Sanjeev Dasgupta
CEO
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