In­di­a­b­ulls buys of­fice from Hines

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­hurima.n@livemint.com

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.

MINT/FILE

In a bid to build ware­hous­ing parks, in­dus­trial clus­ters and town­ships, there is a rush to buy land across states

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