Ascendas, the Singapore-based business parks developer, is embarking on a massive expansion in India. The company has already developed close to eight million square feet spread over 128 acres and is planning to add another 140 acres.
Thomas Teo, who recently took over as the CEO of Ascendas’ India Operations, told Business Standard there was tremendous growth opportunity in India and the company was aggressively rolling out expansion plans.
Ascendas began with the iconic International Technology Park at Whitefield in Bangalore more than a decade ago. Now it is looking to expand in the northern and western regions of India, with integrated township projects.
According to Teo, the expansion plans envisages a 62-acre integrated information technology special economic zone (IT SEZ) in Gurgaon, a 25-acre IT SEZ in Pune and another 53-acre integrated development in Coimbatore. “In addition to these developments, we have two more integrated projects at Chennai and Gurgaon which are being planned,” he added. Ascendas India manages an asset size valued at close to $1.5 billion — about eight million square feet of completed business space catering to 250 clients and 64,000 professionals.
Ascendas has presence in 30 cities in 10 countries, across key markets such as Singapore, India, China, South Korea, Vietnam, Malaysia and the Philippines and has $8 billion assets and 45 million square feet under management.
“We were affected, to some extent, during the downturn in the global economy. The situation has improved to a large extent and we feel the demand is picking up,” Teo said. Ascendas manages five expansive parks in India and has an occupancy rate of 95 per cent.
Teo said there could be some concern once the software technology parks of India scheme comes to an end this financial year.
“The Minimum Alternate Tax is another area of concern in the context of SEZs and we are in constant dialogue with the authorities on the way forward.”
