The Hindu Business Line : Ascendas launches Rs 1,000-cr India IT Parks Fund

ASCENDAS Pte Ltd of Singapore, which builds and manages commercial buildings, on Thursday announced the launch of a Rs 1,000-crore Ascendas India IT Parks Fund seeded by two of its prime IT park properties.

The private real estate fund, with a focus on matured income-producing assets , is expected to eventually grow to Rs 2,000 crore in size, according to an Ascendas press release.

As part of the fund, Ascendas is injecting two assets — the International Tech Park, Bangalore, which it lead-developed, and the recently-acquired Vanenburg IT Park, which will soon undergo identity re-branding.

The fund is constituted in Singapore as a private trust and is expected to be a part-development and part-yield play on India's IT parks sector, which is a high growth sector in view of the country's role as a major global outsourcing hub. The fund has a term of seven years and is managed by Ascendas. Besides new development projects, Ascendas' other properties in India will be considered for the fund once they are deemed ready, added the release.

The fund is privately placed to select institutional investors worldwide. As the fund's sponsor, Ascendas holds a 30 per cent interest with the balance over-subscribed and taken by international investors. They include General Electric Commercial Finance Real Estate, a Rs 132,000-crore global real estate investor.

The release quoted Mr Goh Kok Huat, CEO of Ascendas India and Chief Operating Officer of Ascendas Pte Ltd, as saying that the fund is an ideal vehicle for sophisticated investors to invest in real estate, both matured and development assets.

Ms Chong Siak Ching, President and CEO of Ascendas Pte Ltd, was quoted as saying that Ascendas' business strategy is to seed property funds with its high quality projects, while co-investing with other reputable partners. The Ascendas India IT Parks Fund is consistent with this strategy, which also allows Ascendas to further develop its real estate funds management business.

Ascendas (India) Pvt Ltd develops IT parks and hi-tech buildings as well as built-to-suit and ready-built facilities. Its flagship is the International Tech Park in Bangalore, followed by Cyber Pearl and Vanenburg IT Park in Hyderabad and the International Tech Park in Chennai, which will be ready in July 2005.

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