INVESTMENT MANAGEMENT
Sponsor pipeline
Ascendas-Singbridge Group has granted
a-iTrust with the Right Of First Refusal
(“ROFR”) to acquire income-producing
properties from the following entities:
•
Ascendas Land International Pte. Ltd., which
holds International Tech Park Pune, an IT SEZ
in Pune with 0.66 million sq ft of completed
space and land with development potential of
1.61 million sq ft. Construction of Phase II has
commenced and is expected to add another
0.62 million sq ft of space.
•
Ascendas India Development Trust, a real estate
fund that develops greenfield projects. It has
committed equity of S$500 million and land in
Gurgaon, Chennai & Coimbatore.
•
Ascendas India Growth Programme (“AIGP”),
a real estate investment programme that
targets business space developments and
pre-stabilised completed business space assets.
It has a target asset size of S$600 million. The
ROFR covers Ascendas-Singbridge Group’s stake
in the assets of AIGP.
Third-party acquisitions
BlueRidge 2
In December 2014, we agreed to acquire BlueRidge 2,
a 1.52 million sq ft IT property in Pune. The property
is in the final stages of completion. It is located in
Hinjewadi in Pune, the preferred location for many
top IT companies. The acquisition of BlueRidge 2 is
structured via a two-stage process:
•
a-iTrust had first subscribed to Non-Convertible
Debentures (“NCDs”) amounting to 2,600
million (S$54 million)
1
issued by the co-developer
of BlueRidge 2. The proceeds from the NCDs will
be used to fund the construction of the property.
The coupon on the NCDs is higher than a-iTrust’s
Indian Rupee-denominated borrowing costs.
•
Upon meeting the pre-specified property
leasing threshold of 90% or by 31 December
2016, whichever is earlier, a-iTrust will proceed
to complete the acquisition of BlueRidge 2.
The acquisition price will be determined in
accordance with an agreed formula which
takes into account the rental, rental escalation,
and leasing level at the time of sale.
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 & 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 as
construction funding after the Vendor met pre-
specified leasing milestones. In July 2015, we
completed the acquisition of aVance 3 for an
aggregate consideration of 2,940 million (S$63
million)
1
. The building is currently 100% committed
with multinational corporations such as UnitedHealth
Group and ValueLabs as anchor tenants.
1
Amount translated into Singapore Dollar using spot exchange rate at the time of investment.
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ASCENDAS INDIA TRUST ANNUAL REPORT
2015/2016
OVE R V I EW
WHAT AF F ECT S US
WHAT WE DO
OUR P E R FORMANCE
