SINGAPORE (Feb 11): The trustee-manager of Ascendas India Trust (a-iTrust) is acquiring two warehouses in a logistics park at Khurja, Uttar Pradesh.
These are a 190,000sf facility in the Free Trade Warehousing Zone (FTWZ) of a logistics park developed by seller Arshiya and a 120,000sf warehouse located in the Domestic Tariff Area (DTA).
Ascendas Property Fund Trustee said the park is well connected to Greater Noida, about 48 km away, and caters to the major consumption market of the National Capital Region.
The gross consideration for the proposed acquisition comprises the upfront payment of INR 0.39 billion ($7.5 million) and an additional deferred consideration of up to INR 0.83 billion ($16 million) to be paid in tranches linked to the achievement of certain performance milestones.
The trustee-manager is currently evaluating the indicative commercial terms of the proposed acquisition and discussions with Arshiya are underway prior to the finalisation of the definitive agreements.
In addition to the proposed acquisition, the transaction terms also cover the financing and acquisition of the future development in the 4 million sf Khurja FTWZ and the 1.7 million sf Khurja DTA subject to fulfilment of certain terms and conditions by Arshiya.
The deal is subject to completion of due diligence, negotiation and execution of definitive agreements; and the fulfilment of conditions precedent.
Units in Ascendas India Trust closed 1 cent lower at $1.12 on Monday.
