a-iTrust – BT

a-iTrust expanding tech park in Chennai

ASCENDAS India Trust (a-iTrust) is embarking on a $62.7 million expansion of its IT park in Chennai to meet demand for business space in the Indian city. Construction at the International Tech Park Chennai (ITPC) will begin this month and could be completed in early 2010, adding 802,000 sq ft of new business space.

a-iTrust expects the expansion to be yield accretive for unitholders. According to the trust, even though marketing has not begun, there are already indications of interest for 30 per cent of the new space from existing clients looking to grow their operations.

‘We expect the leasing of the new space to progress well,’ said Jonathan Yap, chief executive of Ascendas Property Fund Trustee, the trustee-manager of a-iTrust. Overall occupancy at the ITPC was 96 per cent as at Sept 30, with 1.26 million sq ft of business space taken up. Office space achieved full occupancy.

a-iTrust will fund the total development cost of $62.7 million by debt. This will raise its gearing from 5 per cent as at Sept 30 to 11 per cent. Units of a-iTrust gained two cents to end trading at 48 cents yesterday.