Ascendas, a Singapore-based property trust, is in Discussions With L&T Realty to Acquire its Upcoming Commercial Developments

According to industry insiders, Singapore-based Ascendas India Trust is in advanced discussions with L&T Realty for a forward purchase agreement to acquire the portfolio of future commercial projects developed by its real estate development arm.

The real estate portfolio contains approximately 5 million square feet of commercial real estate development potential in Bengaluru, Chennai, and Mumbai. Due to the fact that the projects are still in the planning phase, the transaction is believed to be worth more than 2,500 crores based on the existing value of real estate.

Under the terms of the forward purchase agreement, Ascendas intends to gain ownership of these properties in advance, while L&T will perform the projects and transfer them to the trust in accordance with a timetable signed by both parties.

If L&T is retained as a construction partner, the contract structure might impact the value. In light of the competitive market, the Singapore stock exchange-listed Ascendas India Trust is expected to solicit construction bids from various parties in addition to L&T.

According to analysts, the ultimate value of the purchase would depend on whether L&T conducts development of major commercial projects, including information technology parks, or if Ascendas India Trust opens them to other market participants.

Ascendas India Trust already owns eight information technology (IT) parks, one logistics park, and one data centre development in India with a total finished floor space of 15,100,000 square feet. These properties are located in Bengaluru, Chennai, and Hyderabad. Hyderabad, Pune and Mumbai On 31 December 2020.

The assets under management of Ascendas India Trust are valued at USD 2.1 billion.

More about Ascendas India Trust

Ascendas India Trust is a Capital and subsidiary that focuses on capitalising on India's rapidly expanding IT sector and logistics/industrial asset classes.

In addition to proactively diversifying into data centres, which are an appealing, scalable, and resilient asset class in the new economy.