Singapore’s Ascendas-Singbridge Group has agreed to acquire six warehouses from Mumbai-based logistics and supply chain company Arshiya Ltd for up to Rs 534 crore ($83 million).
The transaction involves an upfront payment of Rs 434 crore and the remaining over the next four years depending on certain milestones, Arshiya said in a stock-exchange filing.
The company said it has signed a binding term sheet with Ascendas Property Fund Trustee Pte Ltd, which manages Ascendas India Trust, for the transaction.
The deal is subject to due diligence, agreement on definitive documentation and obtaining necessary board approvals.
Ascendas will acquire six warehouses totaling 8,32,000 sq. ft. of Arshiya at its Free Trade and Warehousing Zone (FTWZ) at Panvel, near Mumbai. All the six warehouses will be leased back under a master lease pact with Arshiya Group.
The transaction will help Arshiya achieve its goal of an asset-light model. The company said it plans to use the proceeds to cut debt. Apart from the Panvel zone, Arshiya also operates a similar facility at Khurja, near Delhi.
On the other hand, Ascendas will get a portfolio of income-yielding warehouses.
Ascendas-Singbridge has been present in India for over two decades through subsidiary Ascendas India. The company last year hired Sanjay Dutt from Cushman & Wakefield to lead its India operations.
The company last year said it planned to float a private equity fund to back warehousing and logistics parks in India.
The company is also looking at growing its office portfolio in India by acquiring operational office assets and lapping up land parcels for greenfield projects. Its India portfolio includes International Tech Park and CyberVale in Chennai; International Tech Park in Bangalore; CyberPearl, The V and aVance in Hyderabad and International Tech Park in Pune.
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