A statement issued on Friday by the trustee manager of Ascendas India Trust (a-iTrust) announced the agreement with Casa Grande Group’s acquisition of an industrial facility located in Mahindra World City in Chennai.
As a part of the forward purchase agreement, a-iTrust will be providing funds for the development of the project.
The wholly-owned subsidiary of Pegatron Corporation, Pegatron Technology India fully preleased industrial facility has a net leasable area of approximately 1.42 million sq ft. Pegatron corporation also manufactures Apple phones on a contract basis.
Pegatron Corporation based in Taiwan is a listed company and manufactures electronics on a contract basis. The MOU signed with the Tamil Nadu government for an investment of Rs 1100 crore aimed at developing the manufacturing facility which will create employment for 14079 people. The excess funding required for the development and procurement of assets will be invested by a-iTrust.
CEO of the trustee manager Sanjeev Dasgupta stated that the takeover will result in portfolio diversification and provide exposure to the industrial asset class. The proposed project will result in top manufacturers like Pegatron incorporated in the tenant portfolio and help their further expansion in India.
a-iTrust on completion and fulfilling the terms and conditions of the project will purchase 100% of the shares of the entity forming the project. The company will also provide additional funding of .37 million sq ft industrial facilities concerning meeting conditions and leasing milestones.
a-iTrust has the opportunity to diversify into the industrial asset class and invest in industrial assets and quality logistics according to the trustee managers’ investment strategy.
The project is presumed to achieve by the middle of 2021. Pegatron has full precommitment to the project with a seven-year lock-in period and yearly increases.
ai-Trust portfolio size will increase to 23.2 million sq ft from 22.8 an increase of 1.9%.