Ascendas buys IT SEZ building in Hyderabad's Hitech City for Rs 500 cr

Ascendas Property Fund Trustee, the trustee-manager of Singapore listed Ascendas India Trust (a-iTrust), on Tuesday said that it is buying an information technology SEZ building in Hitech City of Hyderabad for Rs 500 crore from Phoenix IT Infrastructure.

The building, called aVance 6, has an area of 639,495 square feet, of which about 98 per cent has been leased to a multinational corporation, Amazon Development Center (India) Private Limited.

The proposed acquisition will be the fifth building acquired by a-iTrust from the Phoenix Group. In February 2012, a-iTrust acquired aVance 1 & 2, totaling 427,700 square feet. In July 2015, a-iTrust acquired aVance 3 (682,900 sq ft and in April 2017, it bought aVance 4 (390,000 square ft). aVance 5 is currently under construction.

Sanjeev Dasgupta, Chief Executive Officer of the Trustee-Manager said, “The proposed acquisition provides a-iTrust an opportunity to scale up our presence in HITEC City and will add Amazon as a tenant to our IT park portfolio.  The improving connectivity and enhancement work being carried out at aVance, HITEC City, Hyderabad would benefit our tenants in the future. We have already started seeing some leasing traction, with a large US based MNC having executed a Letter of Intent to lease aVance 5.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel