Arshiya concludes monetization of six warehouses at Panvel

Arshiya Ltd. | Logistics | Transportation & Logistics | BSE: 506074 | NSE: ARSHIYA

05 Feb 2018 Evaluate

Arshiya has concluded the monetization of six warehouses spread over an area of approximately 0.8 million square feet situated at the Free Trade and Warehousing Zone at Panvel, near Mumbai (Arshiya FTWZ) with Ascendas Property Fund (India, part of the Ascendas-Singbridge Group (Asia’s leading sustainable urban and business space solutions provider).

Accordingly, out of the total consideration of Rs 534.00 crore the company has received Rs 434.00 crore on transaction closing date i.e. February 3, 2018 and a deferred payment of Rs 100.00 crore shall be received over four years from transaction closing based on certain performance milestones.

As part of the transaction, the company has concluded the sale of a Special Purpose Vehicle (SPV), an Arshiya Group entity which holds the status of a co-developer at the Arshiya FTWZ, as per the Share Purchase Agreement (SPA) with Ascendas. On transaction closing, the SPV has acquired long-term leasehold rights in the Warehouses from the company and the same are leased back under an operating lease arrangement to Arshiya Lifestyle (ALL), a wholly owned subsidiary of the company, in consideration of pre-agreed rentals. ALL would operate and manage the warehouses retaining the surplus income from rentals and Value added services post payment of pre agreed rentals.

Arshiya is engaged in providing end-to-end logistics and supply chain solutions to customers across the world.