SINGAPORE - Ascendas Property Fund Trustee, the trustee-manager of Ascendas India Trust (a-iTrust), has completed the acquisition of aVance 4, a building in the aVance Business Hub in Hyderabad, India, it said on Tuesday (Apr 11).
a-iTrust entered into an amended share purchase agreement with the vendor, Phoenix Infocity. The total consideration, which includes a deferred component, is expected to be approximately $42.2 million.
The deferred payment, for some vacant space, will be made over the next 12 months in tranches based on leasing.
aVance 4 is a multi-tenanted IT building with a total floor area of 390,000 sq ft.
aVance 4's anchor tenants include multi-national corporations such as IBM India, Sears IT & Management Services India and Ebix Software.
As of Tuesday, aVance 4 had attained a leasing commitment of 80.4 per cent. Discussions are ongoing with prospective tenants for the remaining space and the pipeline is healthy, a-iTrust said.
aVance 4 is the fourth building that a-iTrust has acquired from Phoenix Infocity.
In February 2012, a-iTrust acquired aVance 1 & 2, totaling 427,700 sq ft and in July 2015, a-iTrust acquired aVance 3, totaling 682,900 sq ft.
Ascendas Property Fund Trustee chief executive Sanjeev Dasgupta said: "The acquisition of aVance 4 allows us to increase our presence in Hyderabad, which is currently witnessing robust rental growth arising from healthy demand from global IT companies.
"With its high leasing commitment and quality tenant profile, aVance 4 is an excellent addition to our portfolio. a-iTrust's total floor area increases to 11.5 million sq ft with this acquisition."