Ascendas India Trust

Ascendas India Trust (AIT): DBSV upgrades to Buy rating with TP of $0.87, citing a healthy 3-year 6% DPU CAGR and potential upside should AIT acquire more properties from its sponsor. House reckons the recent acquisition of BlueRidge Phase II provides exposure to Pune, an important IT/ITES hub. The deal also shields AIT from potential downside as it has the right to call for repayment of non-convertible debentures in the event the property fails to meet the minimum 65% leasing threshold upon completion in 2H2015. With an enlarged portfolio of 9m sf, up from 7.5m sf, AIT will now be diversified across four key Indian cities of Chennai (21.8% of floor area), Hyderabad (37%), Bangalore (37.6%) and Pune (16.9%).