Singapore-listed Ascendas India Trust (a-iTrust) has agreed to acquire an IT SEZ building, aVance 6, from Phoenix Group at HITEC City, Hyderabad for INR 5.06 billion (S$92.03 million).
aVance 6 is an IT SEZ building with a total floor area of approximately 639,495 square feet. Approximately 98.3% of aVance 6 is leased to a multi-national corporation, Amazon Development Center (India) Private Limited (Amazon).
“The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio. The improving connectivity and enhancement work being carried out at aVance, HITEC City, Hyderabad would benefit our tenants in the future. We have already started seeing some leasing traction, with a large US based MNC having executed a Letter of Intent to lease aVance 5,” said Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager.
The agreements were executed with the shareholders of Phoenix IT Infrastructure India Private Limited, said Ascendas India Trust in a statement.
The proposed acquisition will be the fifth building acquired by a-iTrust from the Phoenix Group. In February 2012, a-iTrust acquired aVance 1 & 2, totaling 427,700 square feet, in July 2015, aiTrust acquired aVance 3, totaling 682,900 square feet and in April 2017, a-iTrust acquired aVance 4, totaling 390,000 square feet. aVance 5 is currently under construction.