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.
