Wednesday, February 11, 2015

Ascendas India Trust

Ascendas India Trust: gets active with acquisitions, announced it will acquire CyberVale, which comprises 0.6msf operational office space that is fully occupied and 4.4 acre vacant land in Chennai for Rs 1.6b from sponsor.

With cap rate of about 11%, the transaction is done at discount to recent office transactions (cap rates ~9-9.5%) but fully debt funded, is likely to be only marginally DPU accretive.

JPM is positive on AIT’s outlook, forecasting 50% volume growth in next 3 years to 11msf+ on acquisitions and ongoing development. Pipelines include 1msf in existing projects across Bangalore and Chennai.

The house priced AIT at $0.92 based on 12.5% cost of capital and long term growth rate of 5%. FY16E dividend yield projected at 6%.

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