Arshiya sells six warehouses to Ascendas India for Rs 534 crore

MUMBAI: Logistics company Arshiya has entered into an agreement to sell six of its warehouses to Ascendas India for Rs 534 crore.

The storage spaces spread across 832,000 square feet are located in Panvel, on the outskirts of 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 square feet within the existing notified area," said a statement.

The amount will be paid in two tranches--Rs 434 crore upon signing of a definitive agreement and the balance Rs. 100 crore to be paid over 4 years on achieving certain milestones.

The majority of the 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.