Ascendas of Singapore partners with Arshiya

Mumbai, 12th April 2017: 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 & 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.

 

Arshiya has two revenue streams from its clients, one being from rent and the

other from value added services in the ratio of approximately 1:1. Arshiya rental

income would be significantly higher than the rental payout under the sale and

lease back transaction and leave a surplus that would be retained by Arshiya. In

addition, Arshiya would also benefit from the entire income from value added

services.

About Arshiya Limited:

Arshiya operates two Free Trade & Warehousing Zone (FTWZ) in Panvel, near

Mumbai (160 acres) and at Khurja, near Delhi (325 acres), where it also operates

India’s largest Logistic park with unique integrated solution providing capability

consisting – FTWZ, ICD, Rail & Rail Terminal and Domestic Warehousing. Arshiya

assets are strategically located; Mumbai FTWZ is located near JNPT Port and Delhi

Integrated Logistics Park (only one of its kind in India) located 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 one

provided globally.