Mumbai, April 2017 (GPN) : Arshiya Limited entered into a binding term sheet with Ascendas Property Fund Trustee Pte Ltd (“APFT”), whereby APFT, in its capacity as Trustee-Manager of Ascendas India Trust, has agreed, subject to satisfactory due-diligence, agreement on definitive documentation and obtaining necessary Board approvals, to acquire 6 warehouses (totaling 8,32,000 sq.ft.) of Arshiya at its Free Trade and 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 crores, to be paid in two tranches; Rs 434 crores upon signing of a definitive agreement and the balance Rs. 100 crores to be paid over 4 years on achieving certain milestones. The majority of the monetization proceeds will be used by Arshiya for clearing a part of its dues to creditors and repayment of other liabilities post debt restructuring.
All the six warehouses will be leased back under a master lease arrangement with Arshiya Group.ENDS.