High-tech Industrial REIT Ascendas India Trust (a-iTrust)(SGX:CY6U) has announced its investment in a third property within the aVance Business Hub located in Hyderabad, India. The property will be christened the "aVance 3" and will have a total floor area of 690,520 square feet once construction completes.

Hyderabad has been the hot bed of high-tech Indian based outfits particularly in recent years. 

The investment in aVance 3 was one of the intended use of proceeds from the private placement completed on 8 October 2012. Total acquisition cost of aVance 3is currently estimated at INR 2,600 – INR3,000 million (approximately S$59 - S$69 million). The property is expected to be tenanted to high-tech enterprises that have blossomed in the Hyderabad area in recent years. As at 28 February 2013, the leasing commitment level at aVance 3 is at 41 per cent and the building is expected to be complete by mid 2013.

a-iTrust was listed in August 2007 as the first Indian property trust in Asia. Its parent, Singapore-based Ascendas Group, is Asia's leading business property landlord with a chain of industrial park developments across the continent. Shares of a-iTrust ended the day 1.83 per cent higher on the SGX (SGX:S68) at S$0.835.

In related news, a-iTrust has also announced the appointment of Mr Arthur Tan Meng Teck as the Chief Financial Officer of the Trustee-Manager. His appointment follows the resignation of Johnnie Tng Chin Hwee who left the trust in January for personal reasons.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.