Ascendas Property Fund Trustee Pte. Ltd, the Trustee-Manager of Ascendas India Trust a-(a-iTrust), has entered into a forward purchase agreement to acquire an under-construction industrial project from Casa Grande Group located at Mahindra World City, Chennai.
Construction of the industrial facility is expected to be completed by mid-2021.
The facility has a net leasable area of about 0.42 million square feet. The facility is fully pre-leased to Pegatron Technology India P Ltd, a wholly-owned subsidiary of Pegatron Corporation. Pegatron Corporation is a listed Taiwanese contract electronics manufacturer, according to a statement.
Pursuant to the deal structure, a-iTrust will provide funding for development of the facility. Upon its completion and fulfilment of other key conditions, a-iTrust shall purchase 100 per cent shares of the entity developing the facility.
Additional funding
Further, a-iTrust has the option to provide additional funding to develop industrial facilities of about 0.37 million square feet, subject to leasing milestones and other conditions being met.
“The industrial segment has been resilient through the pandemic. The project also offers an opportunity to have a leading manufacturer like Pegatron within our tenant portfolio and support their expansion in India,” Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager, said.