| Date: |
30-12-2014 |
| Subject: |
Ascendas to buy IT SEZ Blue Ridge Phase II for Rs 640 crore |
MUMBAI: Property fund Ascendas India Trust has agreed to buy IT-focused special economic zone BlueRidge Phase II in Pune.
The deal for the under-construction property at Hinjewadi, which has super built up space of 1.5 million sq ft, is for not more than Rs 640.5 crore, Ascendas Property Fund Trustee, the trustee manager of Ascendas India, said in a statement on Monday.
The transaction will include Ascendas Property Fund Trustee acquiring non-convertible debentures of the project company to support further construction. Subscription of the NCDs will amount to Rs 260 crore, the fund added.
The acquisition price will be based on rental, rental escalation and the leasing level of BlueRidge Phase II as at the time of sale. However, if the developer fails to meet this minimum leasing threshold, or any other event defined in the agreement, the fund will have the right to call for repayment of NCDs.
The trust will conclude the acquisition on December 31, 2016 by purchasing 100% equity shares in the project company if a minimum leasing threshold is achieved and certain other conditions are met, according to Ascendas Property Fund Trustee.
The existing shareholders of the co-developer can sell their shares to the trust before December 31, 2016 if BlueRidge Phase II attains 90% or a higher leasing level.
BlueRidge Phase II will comprise three buildings with about 1.5 million sq ft of super built-up area. The development is expected to be completed by the second half of 2015, Ascendas said.
"The Acquisition would help a-iTrust (Ascendas India Trust) to scale up operations to 9 million sq ft. It would also mark a-iTrust's entry into Pune, an important market for its existing and potential clients," said Sanjeev Dasgupta, CEO of the trustee-manager of Ascenads India Trust.
The NCD subscription will be linked to the project's construction funding requirements and Ascendas will get an agreed coupon on these NCDs, higher than its borrowing costs, the statement said.
In May 2013, Pune-based realty developer Paranjape Schemes (Constructions) had sold 100% stake in BlueRidge SEZ phase 1, with total leased space of 1.45 million sq ft, to IDFC Ltd for Rs 450 crore.
Source : economictimes.indiatimes.com
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