Ascendas India Trust: Business parks seeing pickup as Covid cases ease

Ascendas India Trust acquired Building Q1 at Aurum Q Parc at Navi Mumbai in November 2021. Credit: Ascendas India TrustAscendas India Trust acquired Building Q1 at Aurum Q Parc at Navi Mumbai in November 2021. Credit: Ascendas India Trust

Ascendas India Trust is seeing a pickup in the “population” at its business parks, and in leasing interest as restrictions to stem the spread of Covid-19 ease in India, the REIT said in a filing to SGX Tuesday. 

Occupancy dipped in 2020 and 2021, with some firms reducing their office footprint during the pandemic, the REIT noted in its answers to questions from unitholders. During the Omicron outbreak, leasing activity slowed and park population declined, the REIT said. 

“However, majority of tenants within our portfolio did not reduce their space requirements. As Covid-19 restrictions are eased and park physical population is improving, we see a trend of companies looking for more office space to meet the demand for strong growth in the IT sector in India,” Ascendas India Trust said. “We do not see any trend of firms shrinking their footprint because of work-from-home considerations.”

The trust added that there has been a “healthy increase” in tenant employee attendance at the business parks.

Overall physical park population has rising from less than 5 percent in most of 2021 to around 15 percent to 30 percent currently, the REIT said. 

“With increasing physical park population and leasing activities, we expect lease renewals and new lease negotiations to be more active in the coming months,” Ascendas India Trust said.

In addition, the REIT said it its offering flexible spaces and managed office spaces to its tenants amid increasing demand for the formats in India. 

 

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