Arshiya Ltd has entered into a binding term sheet with Ascendas Property Fund Trustee Pte Ltd (APFT), Singapore whereby APFT, in its capacity as Trustee-Manager of Ascendas India Trust, has agreed, subject to satisfactory due diligence, on definitive documentation and obtaining necessary Board approvals to acquire 6 warehouses (totalling 8,32,000 sq. ft) of Arshiya at its Free Trade & Warehousing Zone (FTWZ) located at Panvel, near Mumbai.
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 approx. 4 million sq. ft within the existing notified area.
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 4 years on achieving certain milestones.
Arshiya operates two FTWZs in Panvel (160 acres) and at Khurja, near Delhi (325 acres), where it also operates India’s largest logistics park with unique integrated solutions encompassing FTWZ, ICD, rail and rail terminal and domestic warehousing. Arshiya assets are strategically located—the Mumbai FTWZ is located near JN Port and the Delhi Integrated Logistics Park (only one of its kind in India) at the confluence of the Western and Eastern dedicated freight corridors. The assets near Mumbai and Delhi offer world class logistics and storage facilities with services akin to those provided globally.[/vc_column_text]
