Ascendas India Trust (a-iTrust) has announced that it has agreed to buy the aVance 6 office building at HITEC City, Hyderabad. The c.640,000 square foot building is currently 98.3% leased to e-commerce giant, Amazon and is the latest in a string of building in the aVance complex acquired by a-iTrust from local IT infrastructure developer, the Phoenix Group.
In a series of transactions starting in February 2012, a-iTrust has already purchased aVance 1, 2, 3, 4 & 5. The first four have been completed and tenanted, and aVance 5 is currently under construction.
Commenting on the purchase, Mr. Sanjeev Dasgupta, Chief Executive Officer of a-iTrust said, “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 will 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.”
Ascendas India Trust was listed on the Singapore Exchange in August 2007 as the first Indian property trust in Asia. As at 31 December 2020, a-iTrust’s asset under management stands at S$2.1 billion with the portfolio centred around seven IT parks and one logistics park in and around India’s major tech hubs in Bangalore, Hyderabad, Chennai, Pune and Mumbai.
The REIT was launched by Singapore-headquartered property giants, CapitaLand, one of Asia’s largest diversified real estate groups. As of September 30th, 2020, CapitaLand owned and managed a global portfolio valued at around S$133.3bn ($100.3bn).