InvestorQ : Can you tell me about the deal between Ascendas and the Bengaluru IT park?
sara Kunju made post

Can you tell me about the deal between Ascendas and the Bengaluru IT park?

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Mary Joseph answered.
9 months ago
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Singapore-based Ascendas Property Fund entered into a forward purchase agreement with Garden City Realty to acquire two buildings in an IT Park in Bengaluru. While the final acquisition value will be contingent on a number of factors, it is estimated to be around Rs.1441 crore. In addition, Ascendas India Trust will also provide funding for the development of the project as an integral part and parcel of the deal.

The overall project will comprise of 3 buildings spread across two land parcels with a net leasable area of 2.26 million SFT. Asendas Trust will subsequently acquire leasable area of up to 1.65 million SFT in two buildings spread across two land parcels. This will be done after funding the project.

Ascendas will provide funding to the tune of Rs.828 crore towards project development and also subsequently buy 100% of the shares of the two entities developing the project. The portfolio of the trust post this deal will increase by 7.2% to 24.9 million SFT approximately. For Ascendas, this will be an opportunity to establish its presence in Hebbal which is one of Bangalore’s upcoming IT / ITES nerve centres.

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