Ascendas India Trust (a-iTrust) has agreed a S$42.1m (€27.6m) deal to fund the construction and acquisition of a 325,503sqft warehouse at the Arshiya Free Trade Warehousing Zone at Panvel (Panvel FTWZ).
Ascendas Property Fund Trustee, as trustee-manager of a-iTrust, said a-iTrust has exercised its right under the forward purchase agreement with Arshiya, the vendor, to extend construction funding and finalise the acquisition terms for the additional warehouse to be developed on the 5.5-acre site.
The total construction funding is expected to be S$13.7m.
In February last year, the Indian property trust acquired six operating warehouses, with a total leasable area of 832,249sqft at Panvel FTWZ.
Sanjeev Dasgupta, CEO of the trustee-manager said: “The proposed construction funding of the new warehouse, upon completion, will further enhance a-iTrust’s position in the fast-growing logistics sector in India.
“We are seeing increased tenant demand since our initial acquisition of the six operating warehouses at Panvel FTWZ.”
The acquisition, which is expected to complete by 30 June 2020, will increase a-iTrust’s portfolio size by 1.4% to 22.3m sqft.
An earlier version of this story misstated the construction and acquisition amount in the headline and first paragraph.