Ascendas India Trust secures maiden S$100 million

 Ascendas India Trust secures maiden S$100 million sustainabilitylinked loan from UOB

Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust” or the “Trust”), is pleased to announce that it has successfully obtained a five-year S$100 million unsecured sustainability-linked loan facility from UOB. 

The facility is a-iTrust’s first sustainability-linked loan. The Trust intends to use the proceeds from the loan for general corporate and working capital requirements, including refinancing existing borrowings, the redevelopment of properties, acquisitions, capital expenditure or asset enhancement works of the Trust’s properties.  

 

The facility features a 2-tier incentive mechanism where a-iTrust is entitled to an interest rate reduction when predetermined sustainability performance targets are met. 

Mr. Sanjeev Dasgupta, Chief Executive Officer said, “a-iTrust considers sustainability as a key driver of its value creation strategy. This is implemented through various initiatives towards the environmental and social well-being of the communities where it operates.  

Securing the Trust’s maiden sustainability-linked loan facility is testament to the Trust’s effort in minimising its environmental footprint. The Trust is committed to continuously increase the proportion of its properties which are certified “Gold” or “Platinum”, amidst the Trust’s plans to grow its portfolio. In doing so, it is also able to achieve a lower cost of borrowing for the Trust. This is also in line with CapitaLand Group’s overall green building rating targets of achieving green certifications for all new and existing buildings in its portfolio by 2030.” 

Mr Leong Yung Chee, Head of Group Corporate Banking, UOB said, “At UOB, we are focused on collaborating with our clients on their sustainability goals. In 2020, we provided the largest sustainability-linked bilateral loan in Singapore’s real estate sector to CapitaLand Group. Today, we continue to build on that relationship through our support of a-iTrust, a leading listed property trust managed by the Group. The sustainability-linked loan to a-iTrust is tied to the Environmental, Social and Governance performance of a portfolio of buildings in India, making it the first of its kind in Singapore. This marks another milestone in the way we work with our clients to help advance their sustainability goals and we look forward to our continued collaboration.”

Ascendas India Trust to invest in a forward purchase

Ascendas India Trust to invest in a forward purchase acquisition of

1.65 million square feet of an IT Park at Hebbal, Bangalore

Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust”), is pleased to announce that it has entered into a forward purchase agreement with Gardencity Realty Private Limited (“Vendor”) to acquire two buildings in an IT Park with a total net leasable area of up to 1.65 million square feet located at Hebbal, Bangalore. a-iTrust will also provide funding for the development of the project as part of the forward purchase arrangement.

Effect on portfolio

As a result of the acquisition of these two IT buildings, a-iTrust’s portfolio size (including pipeline projects) will increase by 7.2% from approximately 23.2 million square feet[iv] to approximately 24.9 million square feet.

About the Project

The Project[i] comprises three buildings spread across two land parcels, with an aggregate net leasable area of approximately 2.26 million square feet. a-iTrust proposes to fund the development of the Project and subsequently acquire a net leasable area of up to 1.65 million square feet[ii] in two buildings spread across two land parcels (the “Transaction”).

Initially, and during the construction period, a-iTrust’s investment in the construction of the Project will be through debt. The forward purchase acquisition will take place after completion of the construction and is subject to the receipt of the occupancy certificate for the Project and other key conditions.

Mr Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition will provide an opportunity to establish our presence in Hebbal, one of Bangalore’s upcoming IT/ITES micro-markets, which is currently witnessing stable demand and rent. The improving connectivity and infrastructure near the Project would benefit our tenants in the future.” 

Details of the Transaction

Pursuant to the terms of the funding documents, a-iTrust shall provide funding towards development of the Project of approximately INR 8.28 billion (S$154.1 million[iii]). Upon the Project obtaining the occupancy certificate and fulfilment of other key conditions, a-iTrust shall purchase 100% of the shares of the two entities developing the Project. The total purchase consideration for the Transaction would depend on certain factors, including final rentals achieved, and is currently estimated to be INR 14.41 billion (S$268.2 million3).

Effect on portfolio

As a result of the acquisition of these two IT buildings, a-iTrust’s portfolio size (including pipeline projects) will increase by 7.2% from approximately 23.2 million square feet[iv] to approximately 24.9 million square feet.