Indiabulls buys office from Hines
four transactions in Maharashtra, Karnataka and Tamil Nadu.
“Wehaveacustomer-focused, long- term, annuity model approach where we will build logistics parks which get less rent but are focused on servicing companies, and may also do industrial parks for non-polluting, light manufacturing which attract higher rent and are more specialised,” Salmon said.
Niranjan Hiranandani-promoted Hiranandani Communities is planning to launch a 250acre industrial parkin Talegaon, Pune after it recently got approval for anintegrated industrial area.
Thefirmhasanother300acres near Chennai and 77 acres in Nashik.
“It’s a big opportunity for us and we are in it for the long run. India wasn’t ready for this even five years back but with the government’s push to promote manufacturing and GST this is the right time,” said Hiranandani.
Maharashtra’s industrial policy is in fact based on the premise of providing an exit route to developers stuck with SEZs owing to difficulties in land acquisition, changes in tax laws by the central government. Last week, in a major policy bailout for long-stuck NaviMumbaiSpecial Economic Zone Pvt. Ltd, the Maharashtra government allowed the promoters to convert the 1,842-hectare SEZ into an “integrated industrial township”.
“There was a lot of exuberance around SEZs but not many gained from them due to less demand, more supply leading to the inevitable fall. A lot many things are in order today, making industrial real estate more practical and doable,” said Sanjay Dutt, CEO, operations and private funds, Ascendas-Singbridge India.
Ascendas-Singbridge Group manages 30 million sq. ft of industrial space across Asia-Pa- cific, and plans to build 15-16 million sq. ft of warehousing and logistics space in India in the next five to six years with Firstspace Realty, jointly investing $600 million. EmbassyIndustrial Parks Pvt. Ltd, a collaboration between realty firm Embassy Group and an affiliate of Warburg Pincus, is looking to buy land in Mumbai, Bengaluru and Delhi, the sweet spot being 25-30 acres in each city. By MarchApril, it would have 10 million sq. ft of developable land.
“Buying land is not easy but we are building our business the wayEmbassybuiltits office park portfolio. It helps that we are allowed to draw long- term, cheaper debt after the logistics space was granted infrastructure status,” said Anshul Singhal, CEO, Embassy Industrial Parks.
Lodha Group is also planning to develop a 150-acre logistics and value-added industries park in the Mumbai Metropolitan Region (MMR), as part of its aim to have $1 billion of assets under management by 2021. The location is 45 minutes from Jawaharlal Nehru Port Trust (JNPT) and half an hour from the upcoming airport in Navi Mumbai.
“We are in the process of finalizing our business plan and partner and expect to start work on the site in the next few months,” said Abhishek Lodha, managing director, Lodha Group.
Mahindra Lifespace Developers Ltd will develop two industrial clusters – 264 acres in north Chennai (with Japanese conglomerate Sumitomo Corporation) and268acres nearAhmedabad, apart from earmarking 500 acres in Mahindra World City, Jaipur for industrial development and aggregating land outside Pune.
“The larger question is how will manufacturingdemandplay out in India?” said Anita Arjundas, managingdirector andCEO, Mahindra Lifespace Developers. BENGALURU: Indiabulls Dual Advantage Commercial Assets Fund has bought a commercial office tower in Gurugram from real estate firm Hines India Ltd, marking the first transaction fromits newoffice fund, the company said.
Indiabulls did not disclose the deal amount, but two people familiar with the transaction, who did not wish to be named, said the transaction is valued at around Rs200 crore.
Indiabulls has partnered with co-investor InterGlobe Real Estate Ventures Pvt. Ltd (IGR), the real estate arm of InterGlobe Enterprises Pvt. Ltd for this acquisition. InterGlobe Aviation Ltd, which runs IndiGo, is part of InterGlobe Enterprises.
Indiabulls Dual Advantage Commercial Assets Fund is an alternative investment fund that was launched by Indiabulls Asset Management Co. Ltd in 2017 to raise around Rs1,500 crore, including Rs500 crore from co-investors.
The fund will invest in buying out office properties that generate regular stable rental income, with capital appreciation on exits.
The 240,000 sq. ft office building in Sky View Corporate Park, is part of a project that has been developed by Hines on a 21-acre site.
The first phase of the project has two buildings—one of which has been acquired by Indiabulls and InterGlobe Real Estate Ventures.
The Indiabulls commercial fund along with co- investor InterGlobe has acquired 100% equity in the special purpose vehicle that owns the commercial building that is fully leased out to a single tenant.
Over the next year or so, Indiabulls AMCisplanningtodeploy more than Rs1,000 crore in commercial office space.
“This is our first investment in the commercial office space and we are extremely keen and focused on this space and plan to conclude more such deals over the next six months,” said Ambar Maheshwari, CEO(private equity), Indiabulls AMC.
A Hines representative confirmed the sale of Hines’s asset in Skyview Corporate Park is underway.
Hines India is part of Hines, an international real estate investmentandmanagementfirmwith $100 billion of assets under management.
An InterGlobe Real Estate spokesperson confirmed the firm’s participation in the investment to buy Skyview Towers with Indiabulls.
IGR, a new business venture of InterGlobe Enterprises, started operations from 2017. Currently the business manages the real estate portfolio and funds of the companyandbyparticipating in a combination of greenfield, brownfield andready assets pan-India, IGR intends to create a real estate portfolio of quality yielding assets.
Even as India’s residential real estate business continues to reel under a prolonged slowdown, investors have been buying office assets aggressively.
Earlier this week, Mint reported that Xander Group Inc. has bought an office building of around 250,000 sq. ft at Embassy Golf Links Business Parkin Bengaluru for Rs350 crore from the Sanjay Ghodawat Group.
In January, Indiabulls Real Estate, the property development arm of the Indiabulls Group, said it will acquire a completed office building in Gurugram with a leasable area of 250,000 sq. ft through its subsidiary Yashita Buildcon.
“Given the strong leasing momentum in commercial real estate, good quality assets will continue to attract investors. With the first REIT (real estate investment trust) around the corner, investors are competing with each other to buy assets,” said Rajeev Bairathi, executive director and head of capital markets at property advisory Knight Frank India.
In a bid to build warehousing parks, industrial clusters and townships, there is a rush to buy land across states