Singapore-based Ascendas Property Fund Trustee, the trustee-manager of Ascendas India Trust, has agreed to acquire Phase II of Pune-based BlueRidge IT/ITeS SEZ, a project by Paranjape Schemes (Construction), in two stages.
Ascendas India Trust (a-iTrust), a property trust listed in Singapore, has entered into an agreement to subscribe for non-convertible debentures issued by the co-developer of BlueRidge IT/ITES SEZ amounting to Rs 260 crore (S$54 million), which is tied to BlueRidge Phase II construction funding requirements.
In the second stage, on December 31, 2016, a-iTrust will complete the acquisition of BlueRidge Phase II by buying 100% of the shares in the co-developer if a minimum leasing threshold is met.
According to a statement issued by Ascendas, depending on the conditions at the time of sale, the acquisition is not expected to exceed Rs 640.46 crore (S$133 million). The exchange rate has been taken as S$1 to Rs 48.16.
Sanjeev Dasgupta, CEO of the Trustee-Manager, said, “BlueRidge Phase II, an IT SEZ, is currently under development and it would also mark a-iTrust’s entry in Pune, an important market for its existing and potential clients. We expect the transaction to enhance earnings for unitholders.”
While Ascendas did not disclose the coupon rate agreed upon for the NCDs, it said a-iTrust “will receive an agreed coupon on the NCD that is higher than borrowing costs”. As for the acquisition, if the co-developer fails to meet the minimum leasing threshold or if other events (as defined in the share purchase agreement) occur to prevent the completion of the acquisition, a-iTrust will have the right to call for repayment of the NCDs.
“The shareholders of the co-developer may sell shares to a-iTrust before December 31, 2016, if BlueRidge Phase II attains 90% or a higher leasing. The acquisition price will be determined in accordance with an agreed formula which takes into account the rental, rental escalation and leasing of BlueRidge Phase II as at the time of sale,” said the statement.