Ascendas India Trust has entered a definitive agreement to acquire a 330,000 square foot warehouse at the Arshiya Free Trade Warehousing Zone, Panvel, Navi Mumbai, the REIT said Thursday.
The recently constructed and operational warehouse is being acquired from the Arshiya Group as part of a forward purchase agreement entered into in July 2019, the REIT said in a filing to SGX.
The acquisition price is around INR2.15 billion, or around S$38.7 million, Ascendas India Trust said.
“The acquisition enables a-iTrust to further expand its presence in the logistics sector. Given the unique benefits offered by the FTWZ logistics segment, we are seeing growing demand in this space and this acquisition puts us in a good position to capitalise on this growth,” Sanjeev Dasgupta, CEO of the REIT’s manager, said in the statement.
FTWZ stands for free trade warehousing zone.
This is the seventh warehouse acquired from Arshiya Group, with the six previous warehouses acquired in February 2018, the filing said.
Similar to the other six properties, the seventh warehouse will be leased and operated by a subsidiary of Arshiya Group for six years, the filing said.
The deal is expected to be completed shortly, Ascendas India Trust said.