CHENNAI: Ascendas Property Fund Trustee Pte Ltd, the trustee-manager of Ascendas India Trust, has entered into a forward purchase agreement with Casa Grande group to acquire the latter’s first industrial facility located at Mahindra World City, Chennai.
Ascendas will provide funding for the development of the project as part of the forward purchase arrangement. However, the company did not disclose the deal value. The project is an industrial facility with a net leasable area of about 0.42 million square feet.
The construction work is expected to be completed by mid-2021. The project is currently fully pre-leased to Pegatron Technology India, a wholly-owned subsidiary of the Taiwanese contract electronics manufacturer.
Sanjeev Dasgupta, Chief Executive Officer of the trustee-manager, said, “The proposed acquisition will add exposure to the industrial asset class and diversify our portfolio. The industrial segment has been resilient through the pandemic”.
Ascendas India Trust will fund the rest of the project’s development and subsequently acquire the asset. Upon completion and fulfilment of other key conditions, it would purchase 100 per cent of the shares of the entity developing the project, it said.