Global sovereign funds and private equity players are showing immense interest in India’s commercial real estate segment.
The biggest deal ever in the Indian commercial realty segment was sealed last October, when Canadian private equity giant Brookfield Asset Management acquired the entire 4.5 million sq. ft. commercial portfolio of leading domestic builder Hiranandani Group for $1 billion, òr ₹6,400 crore. (See Top Beneficiaries.) With this single acquisition, the total private equity investment (PE) in Indian commercial real estate in 2016 rose to $1,997 million, almost twice the $1,154 million pumped in the previous year (see Double Gain). The Hiranandani buyout was Brookfield’s second major foray into Indian commercial real estate. In 2014, it had taken over four properties of Unitech Corporate Parks (UCP) in special economic zones and acquired 60 per cent stake in two of its other assets as well for ₹3,500 crore. Later, it acquired the remaining 40 per cent of the two other properties too.
Another deal in 2016 saw Dutch pension fund APG invest $450 million in the Xander Group’s real estate retail arm in India, Virtuous Retail South Asia. The Xander Group is already developing 66 million sq. ft. in India (including residential projects). Singapore-based developer and investor Ascendas-Singbridge has invested close to $2 billion in the commercial segment. “Even as we speak, our company is actively discussing another deal in one of the top six cities of India,” Sanjay Dutt, CEO, India Operations told BT. Sovereign funds of countries such as United Arab Emirates (Abu Dhabi Investment Authority), Qatar (Qatar Investment Authority), Canada (Canada Pension Plan Investment Board) and Singapore (GIC) are all in the hunt, as are global PE giants like KKR, Warburg, Propium PE and Sun Apollo. GIC is said to be close to buying a 40 per cent stake in domestic real estate heavyweight DLF’s rental business, but the deal is taking longer than expected due to differences over valuation.
This story is from the May 07, 2017 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 07, 2017 edition of Business Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Haute Couture in the Kitchen
FASHION BRANDS ARE ENTERING THE RESTAURANT SPACE, AS FOOD SEEMS TO HAVE BECOME THE ULTIMATE FASHION STATEMENT
It's Personal
Mixing work and personal tasks on work machines may be a done thing for many, but it makes sense to have a dedicated device for your personal needs. Here are two such devices
INTO THE BLUE
For WTiCabs Founder and CEO Ashok Vashist, scuba diving is not just an adventure sport. It is a pathway to connect with the ocean
"Challenges are opportunities"
AMIT JAIN CO-FOUNDER & CEO CARDEKHO GROUP CarDekho Group is a digital automotive solutions provider
THE WAIT FOR HIGHER PENSION
ALMOST 18 MONTHS AFTER THE SUPREME COURT RULING, SUBSCRIBERS WHO OPTED FOR A HIGHER PENSION UNDER THE EMPLOYEES' PENSION SCHEME CONTINUE TO WAIT AS THE EPFO, FACING A STAFF CRUNCH, TRIES TO FIGURE OUT THE MATH
"It's possible to have a 25% growth out of India from now on"
Rail Europe Executive Chairman & CEO Björn Bender talks about the India market, the shift to digital, and the way ahead
Evolving Strategies
Companies need to adapt to changing times for a strong workforce
PERKS PRESSURE
IT'S NOT JUST ABOUT THE MONEY ANYMORE FOR EMPLOYEES. FROM FOUR-DAY WORK WEEKS, TO SKILLING ON THE JOB AND MENTAL WELL-BEING EXERCISES, COMPANIES ARE OFFERING A HOST OF BENEFITS TO RETAIN TOP TALENT. IS THIS ENOUGH?
FOSTERING PLURALISM
Axis Bank, with its initiatives and policies, is striving to make a holistic difference to people's careers and hone their skills too
In Keeping With The Times
With a slew of initiatives for its employees, Abbott India is working hard to build a diverse and inclusive workforce