Ascendas India Trust to invest in additional industrial facilities at Mahindra World City, Chennai
This is in addition to the earlier forward purchase transaction announced on 5 March 2021 for a 0.42 million square feet fully leased industrial facility (Casa Grande – Phase 1) within the same micro-market
Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust ("a-iTrust") has recently announced that it has entered into a forward purchase agreement with the Casa Grande Group (the "Transaction") to acquire two industrial assets ("Casa Grande – Phase 2" or the "Phase 2 Project") located at Mahindra World City, Chennai. a-iTrust will also provide funding for the development of the Phase 2 Project as part of the forward purchase arrangement.
This is in addition to the earlier forward purchase transaction announced on 5 March 2021 for a 0.42 million square feet (sqft) fully leased industrial facility ("Casa Grande – Phase 1") within the same micro-market. The acquisition of Casa Grande – Phase 1 was completed on 27 May 2022.
The Phase 2 Project consists of two industrial facilities with a net leasable area totaling 0.31 million sqft. The a-iTrust proposes to fund the development of the Phase 2 Project and subsequently acquire both facilities. The construction of Casa Grande – Phase 2 is expected to be completed by the second half of 2023 and the acquisition will be completed after a stabilization period of 12 months for leasing.
Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, "The full leasing of Casa Grande – Phase 1 validates our assessment of the demand for industrial assets in this location. The proposed Casa Grande – Phase 2 acquisition provides an opportunity to increase exposure to the industrial sector and expand our presence in Mahindra World City, a prime industrial corridor in Chennai."
Pursuant to the deal structure, a-iTrust shall provide funding towards the development of the Phase 2 Project. Upon completion of the Phase 2 Project and fulfilment of other key conditions, a-iTrust shall acquire all of the issued share capital of Chengalpattu Warehousing Parks Private Limited ("CWPPL"), the entity developing the Phase 2 Project.
As a result of the acquisition of Casa Grande – Phase 2, a-iTrust's portfolio size (inclusive of the committed investment pipeline) will increase by 1.2% from approximately 25.0 million sqft 2 to approximately 25.3 million sqft.