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- What is Ascendas India Trust?
- Why is a-iTrust structured as a business trust and not a Real Estate Investment Trust (REIT)?
- Is a-iTrust limited to the development / owning / acquisition of only IT parks?
- How do I invest in a-iTrust?
- In what currency are a-iTrust units denominated?
- What is the financial year end of a-iTrust?
- What is the reporting frequency of a-iTrust?
- What is the cash distribution frequency of a-iTrust?
- Do I need to pay any tax on these cash distributions?
- How often does a-iTrust re-value its portfolio?
- How is a-iTrust related to Ascendas-Singbridge?
1. What is Ascendas India Trust?
Ascendas India Trust, or a-iTrust, is the first listed Indian property trust in Asia. a-iTrust is a business trust with the principal objective of owning primarily income-producing business space in India. a-iTrust may acquire, hold and develop land or uncompleted developments to be used primarily for business space with the objective of holding the properties upon completion.
2. Why is a-iTrust structured as a business trust and not a Real Estate Investment Trust (REIT)?
REITs are subject to a 25% development limit under the Property Funds Guidelines. As a business trust, a-iTrust is not subject to any limit on development activities. However, to achieve a balance between prudence and maintaining flexibility in investment strategies to maximise Unitholders' returns, the Trust Deed provides that a-iTrust's development activities will be limited to 20% of deposited property.
Notwithstanding, certain key safeguarding provisions under the Property Funds Guidelines have been voluntarily adopted by a-iTrust and incorporated into the Trust Deed to protect Unitholders' interest. These include:
- Gearing (Loan-to value) limit of 45% of deposited property;
- Distribute at least 90% of distributable income; and
- Certain restrictions on permissible investments under the Property Funds Guidelines.
3. Is a-iTrust limited to the development / owning / acquisition of only IT parks?
No. a-iTrust is mandated to invest in business space, which includes commercial, industrial and logistic space in India. The concentration of IT parks in a-iTrust's portfolio currently was a result of the strong demand for IT space in India.
4. How do I invest in a-iTrust?
You can buy units in a-iTrust, which is listed on the SGX-ST. For investors outside Singapore, please consult your local stockbroker who may deal in securities listed in Singapore.
5. In what currency are a-iTrust units denominated?
6. What is the financial year end of a-iTrust?
31 March of each year.
7. What is the reporting frequency of a-iTrust?
8. What is the cash distribution frequency of a-iTrust?
Cash distributions are paid on a semi-annual basis normally in May and November of each year, for the 6-month financial periods ending 31 March and 30 September of each year, respectively.
9. Do I need to pay any tax on these cash distributions?
Distributions are exempt from Singapore income tax in the hands of all Unitholders, regardless of whether they are corporates or individuals, foreign or local. The distributions will be free of Singapore withholding tax or tax deduction at source (Tax is paid in India prior to repatriation to Singapore for distribution).
10. How often does a-iTrust re-value its portfolio?
Revaluations are done annually, typically coinciding with the financial year end on 31 March each year. An additional revaluation could be done in between scheduled revaluation dates if it is expected that there be significant change to portfolio valuation in the period, including where land has been redeveloped into a building.
11. How is a-iTrust related to Ascendas-Singbridge?
a-iTrust is managed by Ascendas Property Fund Trustee Pte. Ltd. (the “Trustee-manager”), which is part of Ascendas-Singbridge Group.
Ascendas-Singbridge Group is a leading provider of sustainable urban development and business space solutions with Assets Under Management exceeding S$20 billion. Ascendas-Singbridge Group undertakes projects spanning townships, mixed-use developments, business/industrial parks, offices, hotels and warehouses. Headquartered in Singapore, the Group has a presence across 11 countries in Asia, Australia, Europe and the United States of America. Ascendas-Singbridge Group has deep capabilities in real estate fund management, holding commercial, hospitality and industrial assets.
It has a substantial interest in and also manages three Singapore-listed funds under its subsidiary Ascendas, namely Ascendas Reit (a Straits Times Index component stock), Ascendas India Trust and Ascendas Hospitality Trust. Besides these listed funds, it also manages a series of private real estate funds.