Ascendas Fund to buy Arshiya's 6 warehouses

Ascendas Fund to buy Arshiya's 6 warehouses

 Ascendas Property Fund Trustee has decided to acquire six warehouses totalling 8.32 lakh square feet of Arshiya at its Free Trade and Warehousing Zone (FTWZ) located at Panvel, near Mumbai for a gross consideration of Rs 534 crore.

Arshiya entered into a binding term sheet with Ascendas Property Fund Trustee, whereby APFT, in its capacity as trustee-manager of Ascendas India Trust, has agreed, subject to satisfactory due-diligence, agreement on definitive documentation and obtaining necessary board approvals, to acquire 6 warehouses (totaling 8,32,000 sq ft.) of Arshiya at its Free Trade & Warehousing Zone (FTWZ) located at Panvel, near Mumbai, Arshiya said.

The indicative gross consideration envisaged is Rs 534 crore, to be paid in two tranches; Rs 434 crore upon signing of a definitive agreement and the balance Rs 100 crore to be paid over four years on achieving certain milestones.

The majority of the monetisation proceeds will be used by Arshiya for clearing a part of its dues to creditors and repayment of other liabilities post debt restructuring. All the six warehouses will be leased back under a master lease arrangement with Arshiya Group, the release said.

The intended objective of Arshiya is to achieve an asset light model going forward, while Ascendas will potentially be getting a portfolio of income yielding free trade warehouses. The term sheet also envisages the financing of the future development on the available surplus land which has development potential of approximately four million sq ft. within the existing notified area, the release added.