Ascendas India Trust inks deal to acquire two warehouses in Uttar Pradesh

Singapore two-dollar bills

Ascendas India Trust said on Monday that it signed non-binding term sheets for the proposed acquisition of two warehouses in a logistics park developed by Arshiya at Khurja, Uttar Pradesh.

The consideration for the deal includes an upfront payment of 390 million rupees, or around S$7.5 million, and deferred payments of up to 830 million rupees, or around S$16.0 million, which will be paid in tranches linked to performance milestones, it said in a filing to SGX after the market close on Monday.

One warehouse is around 190,000 square feet and is located in the Free Trade Warehousing zone (FTWZ) and the other is around 120,000 square feet and is located in the Domestic Tariff Area (DTA), it said.

The site caters to the major consumption market of the National Capital Region, which includes New Delhi, Gurgaon and Noida, it said.

The proposed acquisition is subject to due diligence, the negotiation of definitive agreements and other conditions, it said.

The deal terms also cover financing and acquiring future developments in the Khurja FTWZ, which are expected to be around 4.0 million square feet and the Khurja DTA, which are expected to be around 1.7 million square feet, it said.

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