a-iTrust buys India office space

August 27, 2008
a-iTrust buys India office space
By ARTHUR SIM

ASCENDAS India Trust (a-iTrust) will buy 96,051 square feet of office
space at India's International Tech Park Bangalore (ITPB) for 307.8
million rupees (S$10 million).

The space, now owned by Tata Consultancy Services (TCS), will be
leased back to TCS.

a-iTrust already owns 1.7 million-sq ft of space at ITPB through its
Indian special-purpose vehicle International Technology Park Ltd
(ITPL). Jonathan Yap, chief executive officer of the trustee-manager
of a-iTrust, said: 'As one of the four IT parks we own, ITPB has been
delivering good and steady returns. Current occupancy is 100 per
cent, and we continue to experience demand for space from existing
and new clients.'

a-iTrust said that the office purchase is part of an agreement under
which ITPL would construct and sell TCS a custom-built facility at
ITPB, while TCS would, in return, sell office units at the park to
ITPL.

The 515,000-sq ft custom-built facility has been completed and handed
over to TCS.

The office space will be yield-accretive. The pro forma financial
effect on a-iTrust's distribution per unit (DPU) for the financial
year ended March 31, 2008, is expected to be an additional 0.088
cents.

a-iTrust said the acquisition will be funded by drawing down an
existing loan facility. a-iTrust's gearing will be 5 per cent.

Upon completion of the acquisition, a-iTrust will own $1 billion of
assets, comprising 4.8 million sq ft of income-producing space plus
land for the development of 4.2 million sq ft of space.

Mr Yap said: 'We will continue to focus on enhancing returns to
unitholders through organic growth, developing land owned by a-
iTrust, and acquisitions.'