investment management
Development strategy
Since listing, a-iTrust has developed 3.55 million
sq ft of commercial space from its land bank. The
Trust continues to hold substantial vacant land in
Bangalore, Chennai and Hyderabad, with total
development potential of 3.64 million sq ft.
In August 2014, we commenced the construction of
‘Victor’, the latest addition to our portfolio. Victor,
a 0.62 million sq ft multi-tenanted IT building in
International Tech Park Bangalore, is 100% pre-
committed and is expected to boost the income
of a-iTrust after its completion in June 2016. After
constructing Victor, we still have 2.24 million sq ft
of potential built up area within International Tech
Park Bangalore. The remaining land bank will be
developed in phases to meet market demand.
In Chennai, CyberVale has a 4.4 acres
vacant plot with the potential to build a 0.37
million sq ft IT building. Construction will
commence once when we have clear visibility
of leasing demand in that micro-market.
Lastly in Hyderabad, we are redeveloping The V
in phases to gain additional floor area. We are
constructing a new multi-tenanted IT building with
floor area of 0.41 million sq ft. The new IT building
is expected to be completed by the 2
nd
half of
2017. In addition, we recently completed a multi-
level car park with 660 lots in March 2016. We
have secured 16.6% leasing commitment for the
building, and discussions are ongoing with existing
and new tenants to cater to their growth plans.
Acquisition strategy
We pursue acquisitions that offer attractive cash
flows and returns relative to a-iTrust’s weighted
average cost of capital. We seek acquisitions that
enhance the diversification of the portfolio and
optimise risk-adjusted returns to Unitholders.
We have targeted Bangalore, Chennai, Hyderabad,
Mumbai, National Capital Region (comprising
Delhi, Gurgaon and Noida) and Pune for new
acquisitions. These cities were chosen because of
their sound infrastructure, sizeable pool of talented
workforce, and substantial economic base.
When sourcing for third party properties, we
leverage on Ascendas-Singbridge Group’s
presence in India and access to market
information to gain a competitive advantage.
We focus on the following criteria when
evaluating new acquisitions:
•
Location – its proximity to residential
developments, social infrastructure, and access
to public transportation and skilled workforce.
•
Tenancy profile – the credit standing of its
tenants and diversification of tenant base.
•
Design and specification – the quality
of the property, including its size,
age, and state of maintenance.
•
Land title and land tenure – whether
there are disputes or claims over the
title, and remaining tenure of land.
•
Rental and capital growth prospects – its passing
rent and capital value compared to comparable
properties; the overall market outlook.
•
Opportunity to add value – the potential
to increase rental/occupancy rates or
enhance value through selective renovations
and/or other enhancement works.
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ASCENDAS india trust ANNUAL REPORT
2015/2016
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