Ascendas India Trust (a-iTrust) will acquire five buildings in Hyderabad, India with a total built-up area of approximately 2.2 million sq ft.
All five buildings, which are located in India’s Hitec City 2 Special Economic Zone, will be acquired from Indian developer Phoenix Infocity Private Limited.
Out of the five properties, two buildings will be purchased for about 1.74 billion rupees (S$48.8 million), or around 1.77 billion rupees, if transaction expenses are included.
Meanwhile, the other three properties are still under development and are expected to be completed over the next five years. a-iTrust is expected to pay 6.81 billion rupees for the three properties.
“We are optimistic that the demand for business space in Hyderabad will remain buoyant, supported by the city’s strong economic fundamentals and its IT sector,” said Mr. Jonathan Yap, CEO of Ascendas Property Fund Trustee.
“Strong demand for business space has driven the occupancy of Hyderabad’s Grade A office space up to 97 percent”, as of 31 December 2010.
While the two completed properties will be purchased immediately, the company said it will pay for the three remaining properties when they are completed and leased.